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Santry Industries manufactures a vanety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing

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Santry Industries manufactures a vanety 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 $1265,000 in total manufacturing overhead costs in the upcoming year and will use 11,000 machine hours. i Click the icon to view the additional information about the hazardous waste 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 for this job follows F(Click the icon to view the usage for Job 356) disposal fees ) Read the reguirements Requirement 1, Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours Begin by calculating the plantwide overhead rate First identify the formula used to compute the plantwide overhead rate, then compute the rate. (Abbreviations used: MOH manufacturing overhead, mfg manufacturing) Plantwide mfg overhead rate - X Data Table Estimated Activity for this Year Cost Driver Estimated Cost Description of Cost Pool 11,000 660,000 Number of machine hours Machine maintenance costs $ 1,000 80,000 Number of change orders Engineering change orders 525,000 ounds of hazardous materials generated 1,500 Hazardous waste disposal 1,265 000 Total overhead cost. 340 pounds of direct materials at $30 per pound 80 direct labor hours used at $20 per labor hour 90 machine hours used 10 change orders 80 pounds of hazardous waste generated Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. 1. 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? 23

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