Homework: Chapter 15 Warm-Up Activity and Try It! ... Question 2, E15-12A (si... Part 1 of 9 HW Score: 3.2%, 0.48 of 15 points Points: 0.09 of 3 Save Scannell Industries manufactures a variety of custom widgets. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view additional information.) Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: B (Click the icon to view the expected usage and costs.) During the year, Job 356 is started and completed. Usage data for this job are as follows: (Click the icon to view the usage for Job 356.) Read the requirements. Requirement 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Begin by calculating the predetermined manufacturing overhead rate. First identify the formula used to compute the predetermined manufacturing overhead rate, then compute the rate. (Abbreviations used: MOH = manufacturing overhead) : = Predetermined manufacturing overhead rate Scannell Industries manufactures a variety of custom widgets. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. A (Click the icon to view additional information.) Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: (Click the icon to view the expected usage and costs.) During the year, Job 356 is started and completed. Usage data for this job are as follows: (Click the icon to view the usage for Job 356.) Read the requirements More info - X RE bas Data table Be hpute goverhead turing Estimated activity for the year The company estimates that it will incur S2,070,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 machine hours. Up to this point, hazardous waste-disposal fees have been absorbed into the plantwide manulacturing 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. Description of cost pool Machine maintenance costs Engineering change orders Hazardous waste disposal Estimated Cost Cost driver Number of machine $ 400,000 hours Number of change $ 270,000 orders 10,000 3,000 $ 1,400,000 Pounds of hazardous materials generated 4,000 $ 2.070,000 Total overhead cost Print Done Print Done Scannell Industries manufactures a variety of custom widgets. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view additional information.) Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: (Click the icon to view the expected usage and costs.) During the year, Job 358 is started and completed. Usage data for this job are as follows: (Click the icon to view the usage for Job 356.) Read the requirements. Requirement 1. Calcu - X rhead rate - X More info Begin by calculating th Requirements Ised to com = manufacturing overhead) manufactu 1. 2 360 pounds of direct materials at $65 per pound 20 direct labor hours used at $20 per labor hour 60 machine hours used 13 change orders 40 pounds of hazardous waste generated Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 356 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? 3. Print Done Print Done