Williams Ltd manufactures iron gates to individual customers' specifications. The company use the tender process to obtain work, where the company responds to an invitation to submit a competitive bid. Over the last few months. Williams Ltd. has been very quiet, and the managing director, Jack Jones. is concerned that the business will fail if it does not improve its success rate with tenders. The company has two production departments, Bending and Welding, and the production requirements for individual jobs can differ significantly. Some jobs require extensive bending with little welding; others require little bending with a lot of welding. The following table describes the results of the five bids that the company submitted last month. The numbers in brackets after losses indicate where the company ranked in the bid process: Jab Direct labour Direct labour Estimated Overhead no. hours In hours In direct labour nest of bid Bendtne Weldln : heure The pattern of resource usage implied in the above table has persisted for several months. The company uses a predetermined plantwide overhead rate based on practical capacity, which is measured in direct labour hours. The budgeted overhead for the year for the Bending Department is 554,000 [including 518,000 fixed and 536,000 variable}. and for the Welding Department it is $144,000 {including 536,000 fixed and $108,000 variable}. Each department has a monthly practical capacity of 3 000 direct labour hours