Sebago industries manufacturez a variety of custom products. The company has traditionallt used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. the company estimatss that it will incur $ 540,000 in total manufacturing overhead costs in the upcomng year and will use 12,000 machine hours.
Question 1 Sebago Industries manufactures a variety of custom products. The company has traditionally and a laroide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to a grous. The concen estimates that it will incur $540,000 in total manufacturing overhead costs in the upcoming year and wila 12.000 machine hours. Click the icon to view the additional information about the hazardous waste disposal fees) plas During the Requirement 1. Calculate the cost of Job 351 using the traditional plantwide manufacturing overhead tan bond on main bon Begin by calculating the plantwide overhead rate. First identify the formula used to compute the plantide overheat them - Partie igre Calculate the cost of Job 351. Job Cost Record Manufacturing Costs JOB 351 Total job cost Activity 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 alocaton rate in an activity bead con hours, Mach.=Machine, Eng.=Engineering) Choose from any list or enter any number in the input fields and then continue to the next question plantwide manufactus Requirements 1. 2. 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? 3. Print Done owy roomy worry ariety of custom products. The company has traditionally used a partide ad rate based on machine hours to allocate mandacturing overhead to its products. The cowy es that it will incur $540,000 in total manufacturing overhead costs in the upcoming your and wille 12.000 machine hours. Click the icon to view the additional information about the hazardous waste disposal toe.) Question 1 Tours, MacMawe, eng-cgiteng) During they Read the Mach, maintenance Eng. change orders Waste disposal Der pero per pour Calculate the cost of Job 351 using activity-based costing. Job Cost Record Manufacturing Costs JOB 351 Total job cost Requirement 3. If you were a manager, which cost estimate would provide you more useful information? How might you use the internation The cost estimate based on the would provide more set information because the com used to Choose from any list or enter any number in the input fields and then continue to the next question Ulsposal fees.) During the year Blick the Read the Activity cost 11 allocation rate per MH per order per pound fil information? How might you use this information? in because this Total job cost Requirement 3. If you were a manager, which cost estimate would provide you more formation you The cost estimate based on the would provide more www used to Choose from any list or enter any number in the input fields and then continue to the next question waste disposal fees.) Calculate the cost of Job 351 using the traditional plantwide manufacturing overhead rata More Info 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 is hazardous waste disposal costs. Done Print Tactite, Criy-Cheermy nnter any number in the input fields and then continue to the next question, Data Table Description of Cost Pool Machine maintenance costs Engineering change orders Hazardous waste disposal Estimated cost Cost 120.000 Number of machine 150,000 Number of change or 270,000 Pounds of hazardous masa $ 540,000 Total overhead cost. Print Done Data Table X 350 pounds of direct materials at $60 per pound 40 direct labor hours used at $15 per labor hour 100 machine hours used 4 change orders 30 pounds of hazardous waste generated Print Done