Skoth industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufactur overhead to its products. The company estimates that it will incur $1,740,000 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 conts for manufacturing over and activities for the upcoming year are as follows Click the loon to view the expected usage and costs) During the year, Job 358 is started and completed. Usage for this job follows: Click the loon to view the usage for Job 358) Requirement 1. Calculate the cost of Job 358 using the traditional plantwide manufacturing overhead rate based on machine hours Begin by calculating the plantwide overhead rato. First identify the formula used to compute the plantwide overhead rate, then compute the rate (Abbreviations used: MOH = manufacturing overhead, mfg = manufacturing) Plantwide mig overhead rata Data table Estimated Activity for this Year 15,000 6,000 sod: Description of Cost Pool Machine maintenance costs Engineering change orders .... Hazardous waste disposal Total overhead cost Estimated Cost Cost Driver 900,000 Number of machine hours 540,000 Number of change orders $ 300,000 Pounds of hazardous materials generated 1,740,000 1,000 $ Print Done rs. al in lage for Data table hours. of Job 270 pounds of direct materials at $45 per pound 40 direct labor hours used at $50 per labor hour 100 machine hours used 7 change orders 20 pounds of hazardous waste generated comput verhe g. = n 1. 2. 3. Calculate the cost of Job 358 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 358 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? Print Done More 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. Print Done