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Bid Price Review Questions for Final ExamNo. 1The Montreal plant has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:Maintenance:$240,000Inspection:$500,000The plant currently applies overhead using a plantwide rate based on direct labour hours and has an expected capacity of 100,000 direct labour hours. Bid prices are calculated as full manufacturing costs plus 20 percent markup. The following data has been assembledfor use in developing a bid for a proposed job.Direct materials $2800Direct labour $7,500Machine hours900Number of inspections: 8Direct labour hours:1100Total expected machine hours for all jobs during the year is 60,000 and the total expected