Santry 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 $2,190,000 in total manufacturing overhead costs in the upcoming year and will use 15,000 machine hours. Click the icon to view the additional information about the hazardous waste disposal fees.) 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 351 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 351.) Read the requirements. Requirement 1. Calculate the cost of Job 351 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 Data table Data table Description of Cost Pool Estimated Cost Machine maintenance costs $ Cost Driver 900,000 Number of machine hours Estimated Activity for this Year 15,000 Engineering change orders 240,000 Number of change orders 6,000 $ Hazardous waste disposal 1,050,000 Pounds of hazardous materials generated 3,500 $ 2,190,000 Total overhead cost Requirements Print 1. 2. 3. 270 pounds of direct materials at $40 per pound 60 direct labor hours used at $50 per labor hour 80 machine hours used 13 change orders 70 pounds of hazardous waste generated Calculate the cost of Job 351 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 351 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? Print Done Xrint Done