Smith Industries manufactures a variety of custom widgets. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view additional information.) 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 356 is started and completed. Usage data for this job are as follows: (Click the icon to view the usage for Job 356.) Read the requirements. Requirement 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Begin by calculating the predetermined manufacturing overhead rate. rst identify the formula used to compute the predetermined manufacturing overhead rate, then compute the rate. (Abbreviations used: MOH = manufacturing overhead) Predetermined manufacturing overhead rate = Homework: Chapter 15 Homework HW Score: 0%, 0 of 20 points O Points: 0 of 5 Save are as follows: More info Data table s Estimated activity for the year Estimated Cost Cost driver $ 10,000 The company estimates that it will incur $1,160,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 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. Description of cost pool Machine maintenance costs Engineering change orders Hazardous waste disposal Number of machine 100,000 hours Number of change 60,000 orders Pounds of hazardous 1,000,000 materials generated 1,160,000 1,000 = manufacturing overhead) $ 4,000 $ Total overhead cost Print Done Print Done Smith Industries manufactures a variety of custom widgets. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. (Click the icon to view additional information.) Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: E (Click the icon to view the expected usage and costs.) During the year, Job 356 is started and completed. Usage data for this job are as follows: (Click the icon to view the usage for Job 356.) More info Requirements Requirement 1. Calculate the ite based or 350 pounds of direct materials at $20 per pound 70 direct labor hours used at $50 per labor hour 80 machine hours used 8 change orders 1. Begin by calculating the predet ompute the facturing overhead) 2. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 356 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? acturing over 3. 90 pounds of hazardous waste generated Print Done Print Done