Smith 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 companyEB (Click the icon to view the expected usage and costs.) estimates that it will ncur $910,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows During the year, Job 352 is started and completed. Usage for this job follows: ElB Click the icon to view the usage for Job 352.) Read the requirements machine hours. Click the icon to view the additional information about the hazardous waste disposal fees.) Requirement 1. Calculate the cost of Job 352 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) -Plantwide mfg. overhead rate Requirements 1 1. Calculate the cost of Job 352 using the traditional plantwide manufacturing overhead rate based on machine hours Calculate the cost of Job 352 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? 2. 3. Print Done More Info 1 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, indluding its hazardous waste disposal costs. Print Done Data Table Estimated Activity Description of Cost Pool Estimated Cost Cost Driver for this Year 10,000 2,000 1,000 Engineering change orders ....-... 250,000 Pounds of hazardous materials generated 910,000 PrintDone Data Table 1 250 pounds of direct materials at $40 per pound 50 direct labor hours used at $15 per labor hour 120 machine hours used 11 change orders 50 pounds of hazardous waste Print Done