Tennis Company has four categories of overhead. The expected overhead costs for each category, its cost drivers, and its expected activity for the next year are as follows:

Expected Activity

The company has been asked to submit a bid for a proposed job. The plant manager believes that obtaining this job would result in new business in future years. Bids are

usually based upon full manufacturing costs plus $30$ percent. Estimates for the proposed job are as follows:

REQUIRED:

$($A$)$

Determine the amount of overhead that would be allocated to the proposed job if Labor Hours are used as the plant$-$wide cost driver. $[$a$]$

What is the total cost for the proposed job $($using the plant$-$wide Overhead allocation rate$)?[$b$]$

What is the company's bid based on the full manufacturing costs plus $30$ percent? $($Round amounts to $2$ decimal places$)[$c$]$

$($B$)$

Determine the amount of overhead that would be applied to the proposed project if activity$-$based costing is used $[$d$]$

What is the total cost for the proposed job if activity$-$based costing is used? $[$e$]$

What is the company's bid if activity$-$based costing is used and the bid is based on the full manufacturing costs plus $30$ percent? $[$f$]$

$($C$)$

Which product costing method produces the more competitive bid? $($Plant$-$wide or ABC$)?[$g$]$