Question 16 50 pts Part II - Free Response Problem 1. Plantwide and Activity-Based Costing Tua Corporation manufactures custom fiberglass hulls for luxury yachts and pleasure boats. The current cost accounting system uses machine hours to allocate manufacturing overhead to eachjob Tun Corporation estimates that in the coming year it will incur $600,000 in manufacturing overhead costs and use 8,000 machine hours. Depending on the specifications requested by the customer, the hull may use hazardous chemicals that incur greater disposal costs. Tua Corporation's traditional accounting system includes the cost of hazardous wante disposal in with total manufacturing overhead. Tun Corporation is planning to implement an activity-based costing system to more accurately assign hazardous waste disposal costs to each job. Expected usage and costs for manufacturing overhead are as follows: 555 Cost Pool Description Cost Pool Cost Driver Cost Driver Usage Machine Maintenance Costs $200.000 Number of Machine Hours HOOD Engineering Change Orders $100,000 Number of Change Orders 1.250 Hazardous Waste Disposal $300.000 Gallons of Hazardous Waste 800 Total Cost Pool $600,000 The following information relates to Yacht #633, which was started and completed during the year Direct Material Cost Per Pound Machine Hours Used Pounds of Direct Material Usedon Job: Change Orders: Direct Labor Cost Per Hour Gylons cladous Waste: Direct Labor Hours Used: REQUIRED: Use the response space provided to anwwer the following parts. PLEASE BOLD AND UNDERLINE ALL FINAL ANSWERS. You do not need to show work. Part A: Calculate the predetermined activity based costing overhead rates Part B: Calculate the totaljob/product cost for Yacht #633 using the proposed activity based casting approach Part:Calculate the totaljob/product cost for Yacht #633 using a traditional plantwide overhead rate based on machine hours Part D: What is the amount of cost distortion (overcosting or undercosting caused by allocating overhead usintaplanwide overhead rate verse activity based costing porosch