E5-44B Compare bid prices under two different allocation bases (Learning Objectives 3 & 5) Wellington Recycling recycles newsprint, cardboard, etc., into packaging materi coming year, Wellington Recycling estimates total manufacturing overhead to be aFo he The company's managers are not sure if direct labour hours (estimated to be 10.01 6 machine hours (estimated to be 18,018 hours) is the best allocation base to use for ing manufacturing overhead. Wellington Recycling bids for jobs using a 29% markup total manufacturing cost. After the new fiscal year began, Lundy Paper Supply asked Wellington Recycling for a job that would take 1,995 machine hours and 1,750 direct labour hours to The direct labour cost for this job would be $12 per hour, and the direct materials woul total $25,400. 1. Compute the total job cost and bid price if Wellington Recycling decides to use dirert to bid labour hours as the manufacturing overhead allocation base for the year hours as the manufacturing overhead allocation base for the year. $124,500 for this job from Kearns Recycling. What are the ramifications for Wellington 2. Compute the total job cost and bid price if Wellington Recycling decides to use machine 3. In addition to the bid from Wellington Recycling, Lundy Paper Supply received a bid of Recycling