le hours in department B. IfON Explain why the two calculations differ. 3. Exercise 7-25 Plantwide Rate and Activity-Based Costing OBJECTIVE 1 2 Mattawa Manufacturing Inc. has four categories of overhead. The expected overhead costs for vity each of the categories for the next year are as follows: Costs Cost Driver Expected Activity Maintenance $510,000 Machine hours 60,000 Materials handling 250,000 Material moves 20,000 60,000 cost Setups Setups 3,000 Inspection 21,000 Inspections 12,000 for Currently, the company applies overhead using a predetermined overhead rate based upon budgeted direct labour hours of 100,000. The company has been asked to submit a bid on a pro- posed job. Usually bids are based upon full manufacturing costs plus a markup of 60 percent. ns Estimates for the proposed job are as follows: ns Direct materials $30,000 Direct labour $24,000 Number of direct labour hours 8,000 Number of material moves 100 Number of inspections 120 Number of setups 24 Number of machine hours 4,000 Required: If the company used activity-based cost drivers to assign overhead, calculate the bid price of the proposed job. 2 If the company used direct labour hours as the cost driver, calculate the bid price of the pro- posed job