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Skath Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate
Skath 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 $1,535,000 in total manufacturing overhead costs in the upcoming year and will use 9.000 machine hours the can do the additional information about the hard deal f 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 Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows Click the icon to view the expected usage and cess) During the year, Job 352 in started and completed Usage for this job follows (Click the icon to view the usage for Job 352) Description of Cost Pool Estimated Activity for Estimated Cost Cost Driver this Year Machine maintenance costs S 100,000 Number of machine hour 9.000 Engineering change orders Hazardous waste disposal. S 180.000 Number of change anders 6.000 S 1.575.000 pounds of hazardous materials generated 4.500 S 1935 000 Total overhead cost. Print Done Print Done
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