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Scannell Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate
Scannell 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 $1,515,000 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 350 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 350.) Read the requirements. nates that it will incur $1,515,000 in total manufacturing overhead costs in the upcoming year and machine hours. con to view the additional information about the hazardous waste 1. Calculate the cost of Job 350 using the traditional plantwide m lating the plantwide overhead rate. First identify the formula used nated manufacturing costs/ Estimated total machine h 1,515,000 Cost of Job 350. 15,000 i Data Table During the year, Job 350 is started and completed. Usage for this job follows: for Job 350.) 280 pounds of direct materials at $65 per pound 50 direct labor hours used at $45 per labor hour 120 machine hours used 6 change orders 90 pounds of hazardous waste generated - ations used: MOH = manufacturing overhead; n riety of custom products. The company has traditionally used a plantwide machine hours to allocate manufacturing overhead to its products. The 515,00 al info Data Table 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.) llows: - X Job 3 head Estimated Activity Description of Cost Pool Estimated Cost Cost Driver for this Year overhead; mfg. manufacturing Machine maintenance costs. 150,000 Number of machine hours.. 15,000 sts Engineering change orders S 60,000 Number of change orders. 1,305,000 3,000 Hazardous waste disposal Pounds of hazardous materials generated.. 4,500 $ 1,515,000 Total overhead cost Calculate the cost of Job 350. Job Cost Record JOB 350 Direct materials Direct labor Manufacturing overhead allocated Total job cost Manufacturing Costs 18200 2250
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