Scofield 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 $1,320,000 in total manufacturing overhead costs in the upcoming year and will use 12,000 machine hours. i 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 loon to view the usage for Job 350. Read the requirements. Manufacturing overhead allocated 12,100 34.250 Total job cost Requirement 2. Calculate the cost of Job 350 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 Total est, activity cost pool Total est. activity allocation base allocation rate Mach, maintenance S 480.000 12,000 S 40 per MH Eng, change orders S 180.000 6.000 S 30 per order Waste disposal $ 660,000 2,000 = S 330 per pound + + Calculate the cost of Job 350 using activity-based costing. Job Cost Record JOB 350 Direct materials Direct labor Manufacturing Costs $ 20,150 2,000 14600 Manufacturing overhead allocated Totaljob cost Scofield 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 $1,320,000 in total manufacturing overhead costs in the upcoming year and will use 12,000 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: E (Click the loon to view the usage for Job 350.) Read the requirements. Data Table Manufacturing overhead allocated Total job cost Requirement 2. Calculate the cost of Job 35 Begin by calculating the allocation rate for ea hours, Mach.=Machine, Eng.Engineering) Estimated Activity for this Year 12,000 ions used: est. estimated, MH machine Description of Cost Pool Estimated Cost Cost Driver Machine maintenance costs ......S 480,000 Number of machine hours Engineering change orders ..... S 180.000 Number of change orders S Hazardous waste disposal...... S 660,000 Pounds of hazardous materials generated S 1,320,000 Total overhead cost..... 6,000 Total est activity 2.000 Mach. maintenance $ 480.00 S 180.00 Eng, change orders Waste disposal $ 660,01 Calculate the cost of Job 350 using activity-b Print Done Job Cost Record JOB 350 Direct materials Direct labor S 20,150 2,000 Manufacturing overhead allocated 14600 Totaljob cost Scofield 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 $1,320,000 in total manufacturing overhead costs in the upcoming year and will use 12,000 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 loon to view the usage for Job 350. Read the requirements. Data Table Manufacturing overhead allocated 12,100 34.250 Total job cost Requirement 2. Calculate the cost of Job 350 using activity-based costing. Begin by calculating the allocation rate for each activity. First determine the form hours, Mach.=Machine, Eng.Engineering) the rate for each activity. (Abbreviations used: est. = estimated, MH machine 310 pounds of direct materials at $65 per pound 50 direct labor hours used at $40 per labor hour 110 machine hours used 11 change orders 30 pounds of hazardous waste generated + Total est. act Mach, maintenance S Total est, activity cost pool 480.000 180.000 S + Eng, change orders Waste disposal $ 660,000 + Calculate the cost of Job 350 using activity-based costing. Print Done Job Cost Record JOB 350 Direct materials Direct labor Manufacturing Costs $ 20,150 2,000 14600 Manufacturing overhead allocated Totaljob cost