The Oakland plant has the following overhead cost estimates for the coming year:
Machine maintenance related costs				$ 240,000
Set-up related costs				200,000
Inspection related costs				500,000
Total overhead				$ 940,000
Overhead is currently applied using labor hours, with an expected amount
of 100,000 hours in the next year.
Total expected machine hours				60,000	hours
Total expected set-ups				800	set-ups
Total expected inspections				4,000	inspections
The following data has been assembled for a proposed job which would require the
production of 1,000 units of a product. Bid prices normally reflect a 20% mark-up on cost.
	Proposed Job
	Production			1,000	units
	Direct material			$ 10,000
	Direct labor hours			1,000	hours
	Direct labor rate			$ 12.00	per hour
	Machine hours			900	hours
	Batch size			250	units per batch
	Number of inspections			8	inspections
a. Determine the bid price for the proposed job using the current costing system. (8 pts)
b. Determine the bid price for the proposed job using an activity-based costing system. (8 pts)