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 $1,750,000 in total manufacturing overhead costs in the upcoming year and will use 16.000 machine hours. Up to this point, hazardous waste disposal foes have been absorbed into the plantide manufacturing overhead ratio 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. 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.) Requirements Requirement 1. Calculate the cost of Job 350 using the traditional plantwide manufactung overhead rate based on machine hours Begin by calculating the predetermined manufacturing overhead rate First, identify the formula used to compute the predetermined manufacturing overhead rate, then compute the rate (Abbreviations used: MOH - manufacturing overhead) Predetermined manufacturing overhead rate Calculate the cost of Job 350 Job Cost Record JOB 360 Manufacturing Costs Choose from any list or enter any number in the input fields and then continue to the next question Scofield Industries manufacturos 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 $1.760000 in total manufacturing overhead costs in the upcoming year and wil use 16.000 machine hours Up to this point handous wade desposales have been absorbed into the plantwide manufacturing overhead rate and allocated to products as part of the manufacturing overhead process Recently, the company has been experiencing significantly increased waste de les for h ardous 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 Expected usage and costs for manufacturing overhead activities for the upcoming your 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.) Regements Totaljob 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 o compute the location rate in an activity based costing system, then compute the rate for each activity (Abbreviations used: est. estimated, MH machine hours Activity cost icon Der MH por order Mach maintenance Eng change orders Choose from any list or enter any number in the input fields and then continue to the next question 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 $1,750,000 in total manufacturing overhead costs in the upcoming year and will use 16,000 machine hours 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. 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.) Recrements por MH Mach maintenance Eng change orders Waste disposal per order pa Calculate the cost of Job 350 using activity based costing Job Cost Record JOB 350 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? Choose from any list or enter any number in the input fields and then continue to the next question Scofield Industries manufactures a variety of custom products. The company hasCompany management want to implement an activity based costing system so traditionally used a plantwide manufacturing overhead rate based on machine that m o rs know the cost of each product including its hazardous waste hours to allocate manufacturing overhead to its products The company estimates disposal costs. Expected usage and costs for manufacturing overhead activities that it will incur $1.760,000 in total manufacturing overhead costs in the upcoming for the upcoming year are as follows: year and will use 16.000 machine hours Up to this point hardous waste Click the icon to view the expected usage and costs.) disposal fees have been absorbed into the plantwide manufacturing overhead rale and allocated to all products as part of the manufacturing overhead process During the year, Job 350 is started and completed Usage for this job follows: Recently, the company has been experiencing significantly increased waste Click the icon to view the usage for Job 350.) disposal foes for hazardous waste generated by certain products, and as a result R e nts profit margins on all products have been negatively impacted W DISPOS Calculate the cost of Job 350 using activity based costing Manufacturing Job Cost Record JOB 350 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 account would provide more useful information because this cost estimate takes into This information can be used to Choose from any list or enter any number in the input fields and then continue to the next question Requirements s for hazardous waste generated by certain products and as a result, as on all products have been negatively impacted. US he costi Data Table Record Description of cost pool Machine maintenance costs Engineering change orders Hazardous waste disposal Estimated Cost Cost driver $ 800,000 Number of machine hours S 450,000 Number of change orders 510,000 kg of hazardous materials generated 1,760,000 Estimated activity for this year 16,000 5,000 cost 1,500 ment 3. If Total overhead cost testimate te takes into Print Done from any list or enter any number in the input fields and then continue to the next question pultuu. v per 0 More Info dcd anuf 320 kg of direct materials @ $50 per kg 95 direct labour hours used @ $20 per labour hour 110 machine hours used 12 change orders 95 kg of hazardous waste generated cost it you use Print Done rmation be . This information can be used to he input fields and then continue to the next