Sidney 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 $1,950,000 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.) Requirement 1. Calculate the cost of Job 350 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) Total estimated manufacturing costs 1,950,000 Estimated total machine hours 15.000 Plantwide mig overhead rate 130 Calculate the cost of Job 350. Job Cost Record JOB 350 Direct materials Manufacturing Costs 16.900 Clear all Final check Eng, change orders $ 240,000 Waste disposal $ 660.000 Calculate the cost of Job 350 using activity-based costing Job Cost Record JOB 350 Direct labor Direct materials Manufacturing overhead allocated Total job cost Get more help Manufacturing Costs 2,000 16,900 6,000 $ 40 per order 2,000 330 per pound Clear all Final check 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 its hazardous waste disposal costs. Data table Description of Cost Pool Machine maintenance costs...... S Engineering change orders..... Hazardous waste disposal.. Total overhead cost..... Estimated Cost Cost Driver 1,050,000 Number of machine hours 240,000 Number of change orders 660,000 Pounds of hazardous materials generated 1,950,000 Print Done Estimated Activity for this Year 15,000 6,000 2,000 Data table 260 pounds of direct materials at $65 per pound 80 direct labor hours used at $25 per labor hour 140 machine hours used 9 change orders 40 pounds of hazardous waste generated Print Done