Castle Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $1,310,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 machine hours. Up to this point, hazardous waste disposal foes have been absorbed into the plantwide manufacturing overhead rate and allocated to all products as part of the manufacturing overhead process. Recently the company has been experiencing significantly increased waste disposal fees for hazardous waste generated by certain products and, as a result, profit margins on all products have been negatively impacted. Company management wants to implement an activity based costing system so that managers know the cost of each product, including its hazardous waste disposal costs. Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: Description of Cost Estimated Cost Cost Driver Estimated Activit this Year Pool $ 350.000 Machine maintenance costs Number of machine hours 10,000 360,000 3,000 Engineering change orders Number of change orders 600,000 1,000 Hazardous waste disposal kg of hazardous materials generated Total overhead cost $1,310.000 During the varinh 25A is started and comnleted leana data for this inhares Hazardous waste 600,000 kg of hazardous disposal materials generated 1,000 Total overhead cost $1,310,000 During the year, Job 356 is started and completed. Usage data for this job are as follows: 400 kg of direct materials at $40 per kg 75 direct labour hours used at $20 per labour hour 100 machine hours 8 change orders 60 kg of hazardous waste Castle Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $1,310,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 machine hours. Up to this point, hazardous waste disposal foes have been absorbed into the plantwide manufacturing overhead rate and allocated to all products as part of the manufacturing overhead process. Recently the company has been experiencing significantly increased waste disposal fees for hazardous waste generated by certain products and, as a result, profit margins on all products have been negatively impacted. Company management wants to implement an activity based costing system so that managers know the cost of each product, including its hazardous waste disposal costs. Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: Description of Cost Estimated Cost Cost Driver Estimated Activit this Year Pool $ 350.000 Machine maintenance costs Number of machine hours 10,000 360,000 3,000 Engineering change orders Number of change orders 600,000 1,000 Hazardous waste disposal kg of hazardous materials generated Total overhead cost $1,310.000 During the varinh 25A is started and comnleted leana data for this inhares Hazardous waste 600,000 kg of hazardous disposal materials generated 1,000 Total overhead cost $1,310,000 During the year, Job 356 is started and completed. Usage data for this job are as follows: 400 kg of direct materials at $40 per kg 75 direct labour hours used at $20 per labour hour 100 machine hours 8 change orders 60 kg of hazardous waste