The typical bid price includes a 35% markup over full manufacturing cost. Round all overhead rates to the nearest cent. Round all bid prices to the nearest dollar. Required: 1. Calculate a plan t wide rate for Folsom Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate departmental overhead rates for the producing departments. What is the bid price of each job using these rates? Problem 4-58 Calculate Job Cost and Use It to Calculate Price Suppose that back in the 1970s, Steve was asked to build speakers for two friends. The first friend, Jan, needed a speaker for her band. The second friend, Ed, needed a speaker built into the back of his hatchback automobile. Steve figured the following costs for each: Estimated overhead Direct labor hours Direct labor cost Machine hours Welding $220,000 4,500 $ 90,000 5,000 Assembly $ 62,000 10,000 $150,000 1,000 Finishing $150,000 6,000 $120,000 2,000 Currently, overhead is applied on the basis of machine hours using a plant wide rate. However, Janine, the controller, has been wondering whether it might be worthwhile to use departmental overhead rates. She has analyzed the overhead costs and drivers for the various departments and decided that Welding and Finishing should base their overhead rates on machine hours and that Assembly should base its overhead rate on direct labor hours. Janine has been asked to prepare bids for two jobs with the following information.