The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls. Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager's salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $190,000. Each department's overhead consists primarily of depreciation and other machine-related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows: Budgeted Department Overhead Department A 100,000 Department B 500,000 (excludes plantwide overhead) Actual Department Overhead 110,000 520,000 Expected Activity: Direct Labour Hours 50,000 10,000 Machine Hours 10,000 50,000 Actual Activity: Direct Labour Hours 51,000 Machine Hours 10,500 9.000 52,000 For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining to job no. 110 are as follows: Direct Materials Direct Labour Cost: 20,000 Department A (2.000 hr) 30,000 Department B (500 hr) 6,000 Machine Hours Projected: Department A 100 Department B 1.200 10,000 Units Produced Instructions (Round overhead rates and unit costs to 2 decimal places and round other cost calculations to the nearest dollar.) a. Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Use expected direct labor hours to compute the overhead rate. Find the overhead rate and determine the projected amount of total manufacturing costs per unit for the units in job no. 110. b. Recalculate the projected manufacturing costs for job no. 110 using three separate rates: one rate for plantwide overhead and two separate department overhead rates, all based on machine-hours. c. The sales policy at St. Falls dictates that job bids be calculated by adding 30 percent to total manufacturing costs. What would be the bid for job no. 110 using (1) the overhead rate from part a and (2) the overhead rate from part b? Explain why the bids differ. Which of the overhead allocation methods would you recommend and why?