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 $1,140,000 in total manufacturing overhead costs in the upcoming year and will use 19,000 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 352 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 352.) Requirements Requirement 1. Calculate the cost of Job 352 using the traditional plantwide manufacturing 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 352 Manufacturing Job Cost Record JOB 352 Costs Choose from any list or enter any number in the input fields and then continue to the next question ut el PTUJUUS nave been negatively impacted. Job Cost Record JOB 352 Manufacturing Costs Total job cost. Requirement 2. Calculate the cost of Job 352 using activity-based costing. Begin by calculating the allocation rate for each activity. First, determine the formula to compute the allo the rate for each activity. (Abbreviations used: est. = estimated, MH=machine hours) Begin by calculating the alocation 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 maintenance Activity cost allocation rate per MH per order Eng. change orders Waste disposal perka Calculate the cost of Job 352 using activity-based costing Job Cost Record JOB 352 Manufacturing Costs Choose from any list or enter any number in the input fields and then continue to the next question 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 $1,140,000 in total manufacturing overhead costs in the upcoming year and will use 19,000 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 that managers know the cost of each product, including its hazardous waste disposal costs. Expected usage and costs for manufacturing overhead activiti for the upcoming year are as follows: PER (Click the icon to view the expected usage and costs.) During the year, Job 352 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 352.) Requirements Calculate the cost of Job 352 using activity based costing. Job Cost Record JOB 352 Manufacturing Costs Totaljob 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 e is. up p m, acaruous was have been absorbed into the planude manufactura. Adheadiate to all (Click the icon to view the expected usage and costs.) is job follow 0 Data Table for ha son al cost acord Description of cost pool Estimated Cost Cost driver Machine maintenance costs Engineering change orders Hazardous waste disposal 570,000 Number of machine hours 300,000 Number of change orders 270,000 kg of hazardous materials generated 1,140,000 Estimated activity for this year 19,000 5,000 1,000 Total overhead cost nt 3. If Print Done timate based on the would provide more useful information because this cost estimate takes into This information can be used to n any list or enter any number in the input fields and then continue to the next question ety of custom products. The company has turing overhead rate based on machine ead to its products. The company estimates mufacturing overhead costs in the upcoming rs. Up to this point, hazardous waste the plantwide manufacturing overhead rate E the manufacturing overhead process. riencing signif nerated by cer More Info en negatively i Company management wants to implement an activity based that managers know the cost of each product, including its haze disposal costs. Expected usage and costs for manufacturing ov for the upcoming year are as follows: (Click the icon to view the expected usage and costs.) During the year, Job 352 is started and completed. Usage for th The usage for Job 352.) h machine hours. Job 352 using ed manufacturin ed: MOH = ma predetermined manufacturing ov. 350 kg of direct materials @ $75 per kg 50 direct labour hours used @ $50 per labour hour 145 machine hours used 12 change orders 90 kg of hazardous waste generated rhead rate Manuf Print Done number in the input fields and then continue to the next