Problem 5-50 Overhead Rates, Unit Costs OBJECTIVE 2 Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows Welding Estimated overhead Direct labor hours Direct labor cost Machine hours $220,000 4.500 $90,000 5,000 Assembly S62,000 10,000 $150,000 1,000 S150,000 6.000 S120,000 2,000 Currently, overhead is applied on the basis of machine hours using a plantwide 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: Job 1 Job 2 Direct materials Direct labor cost Direct labor hours: $6,725 9,340 $1,800 S3,100 Welding Assembly Finishing 60 20 20 70 Number of machine hours: Welding Assembly Finishing 50 60 90 50 25 125 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