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 managers salary, accounting personnel, cafeteria, and human resources, is budgeted at $200,000. During the past year, actual plantwide overhead was $185,000. Each departments 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.

	Department A				Department B
Budgeted department overhead
(excludes plantwide overhead)	$	196,000			$	559,000
Actual department overhead		142,000				574,000
Expected total activity:
Direct labor hours		36,000				10,000
Machine-hours		14,000				43,000
Actual activity:
Direct labor hours		38,500				9,400
Machine-hours		14,500				45,000

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 only to job no. 110 are as follows.

Direct materials	$	16,500
Direct labor cost:
Department A (2,000 hr)		30,000
Department B (500 hr)		10,000
Machine-hours projected:
Department A		140
Department B		1,200
Units produced		10,000

c-1. The sales policy at St. Falls dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a? overhead rate from part a=$20.76 per direct labor hour

c-2. The sales policy at St. Falls dictates that job bids be calculated by adding 24 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b? overhead rate from part b= $3.51 per machine hour

c-3. Which of the overhead allocation methods would you recommend?