Scannell Industries manufactures a variety of custom products. The Expected usage and costs for manufacturing overhead activities for the company has traditionally used a plantwide manufacturing overhead rate upcoming year are as follows: based on machine hours to allocate manufacturing overhead to its products. Click the icon to view the expected usage and costs.) The company estimates that it will incur $1,770,000 in total manufacturing overhead costs in the upcoming year and will use 15,000 machine hours. During the year, Job 351 is started and completed. Usage for this job follows: Click the icon to view the additional information about the hazardous waste disposal fees.) (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 mig, overhead rate Calculate the cost of Job 351 Job Cost Record JOB 351 Manufacturing Costs Total job cost Requirement 2. Calculate the cost of Job 351 using activity-based costing. Begin by calculating the allocation rate for each activity. First 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, Mach Machine, Eng.Engineering) Activity cost allocation rate Mach, maintenance Eng. change orders per order Waste disposal per pound per MH Calculate the cost of Job 351 using activity-based costing. Job Cost Record JOB 351 Manufacturing Costs Total job cost Requirement 3. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? The cost estimate based on the would provide more useful information because this cost estimate takes into account V. This information can be used to Requirement 3. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? The cost estimate based on the would provide more useful information because this cost estimate takes into account ised to activity-based costing rates Choose from any list or enter a traditional plantwide manufacturing overhead rate next question. Requirement 3. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? The cost estimate based on the would provide more useful information because this cost estimate takes into account V. This information can be used to Choose from any the machine hours used by each product continue to the next question. the specific resources used by each product Total job cost Requirement 3. If you were a manager, which cost estimate would provide you more useful informe determine competitive direct labor rates price jobs based on more accurate costs schedule production The cost estimate based on the takes into account would provide This information can be used to Scannell Industries manufactures a variety of custom products. The Expected usage and costs for manufacturing o company has traditionally used a plantwide manufacturing overhead rate upcoming year are as follows: based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view the expected usage The company estimates that it will incur $1,770,000 in total manufacturing overhead costs in the upcoming year and will use 15,000 machine hours. During the year, Job 351 is started and comple follows: Click the icon to view the additional information about the hazardous (Click the icon to view the usage for Job 39 wa More Info al fees.) Read the requirements. compute the rate or each acuvity. (Abbreviations used: est. = esuriateu, wm=marine nours, ivan.=machine, Eng.=engineer More Info Mach, maintenance Eng. change orders Waste disposal Calculate the cost of Job 351 u Up to this point, hazardous waste disposal fees have been absorbed into the plantwide manufacturing overhead rate and allocated to all products as part of the manufacturing overhead process. Recently, the company has been experiencing significantly increased waste disposal fees for hazardous waste generated by certain products, and as a result, profit margins on all products have been negatively impacted. Company management wants to implement an activity-based costing system so that managers know the cost of each product, including its hazardous waste disposal costs. Job Cost Record JOB 351 Print Done Scannell Industries manufactures a variety of custom products. The Expected usage and costs for manufacturing overhead activities for the company has traditionally used a plantwide manufacturing overhead rate upcoming year are as follows: based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view the expected usage and costs.) The company estimates that it will incur $1,770,000 in total manufacturing overhead costs in the upcoming year and will use 15,000 machine hours. Data Table mar, Job 351 is started and completed. Usage for this job Click the icon to view the additional information about the hazardous waste disposal fees.) (Click the icon to view the usage for Job 351.) Read the requirements compunere UV and on IWAN METICUS. MAC Mace. Once Data Table Mach Eng Estimated Activity for this Year Wast 15,000 Calcu Description of Cost Pool Machine maintenance costs. Engineering change orders Hazardous waste disposal Estimated Cost Cost Driver $ 450,000 Number of machine hours. $ 360,000 Number of change orders $ 960,000 Pounds of hazardous materials generated .. $ 1.770,000 4,000 Job 3,000 JOB Total overhead cost. Print Done Total Il Industries manufactures a variety of custom products. The Expected usage and costs for manufacturing overhead activities for the my has traditionally used a plantwide manufacturing overhead rate upcoming year are as follows: on machine hours to allocate manufacturing overhead to its products. Click the icon to view the expected usage and costs.) mpany estimates that it will incur $1,770,000 in total manufacturing ad costs in the upcoming year and will use 15,000 machine hours. During the year, Job 351 is started and completed. Usage for this job follows: k the icon to view the additional information about the hazardous isposal fees.) Click the icon to view the usage for Job 351.) RData Table rements une rate or each acuviLY. (Abreviations used: est. = esumate, in=machine Tours, macn.-machine, eng.-engineering) tivity cost 0 Data Table cation rate maintenance mange orders disposal 270 pounds of direct materials at $40 per pound per pound 30 direct labor hours used at $15 per labor hour ate the cost of Job 351 using activ 80 machine hours used most Record 11 change orders 51 60 pounds of hazardous waste generated per MH per order Print Done