Industries manufactures a variety of customproducts. 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$2,090,000 in total manufacturing overhead costs in the upcoming year and will use11,000 machine hours. Up to thispoint, hazardous waste disposal fees have been absorbed into the plantwide manufacturing overhead rate and allocated to allproducts

as part of the manufacturing overhead process.Recently, the company has been experiencing significantly increased waste disposal fees for hazardous waste generated by certainproducts,

and as aresult, profit margins on allproducts have been negatively impacted.

Company management wants to implement an activity based costing system so that managers know the cost of eachproduct, including its hazardous waste disposal costs. Expected usage and costs for manufacturing overhead activities for the upcoming year are asfollows:

Data table Estimated activity Description of cost pool Estimated Cost Cost driver for this year Machine maintenance costs 550,000 Number of machine hours 11,000 Engineering change orders 420,000 Number of change orders 6,000 Hazardous waste disposal 1, 120,000 Kg of hazardous materials generated 3,500 $ 2,090,000 Total overhead costRequirement 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 rateCalculate the cost of Job 356. Job Cost Record Manufacturing JOB 356 Costs Total job cost . . .Begin by calculating the allocation rate for each activity. Firs determine the formula to compute the allocation rate in an activity-based costing system, then compute the rate for each activity. {Abbreviations used: est. = estimated. MH=machine hours] Activity cost I = allocation rate Mach. maintenance I = per MH Eng. change orders I I = per order Waste disposal I = per kg More info 300 kg of direct materials @ $50 per kg 80 direct labour hours used @ $25 per labour hour 145 machine hours used 6 change orders 70 kg of hazardous waste generatedCalculate the cost of Job 356 using activity-based costing. Job Cost Record Manufacturing JOB 356 Costs Total job cost