Sorrentino 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 $1,830,000 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 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 351 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 351.) Read the requirements. Requirement 1. Calculate the cost of Job 351 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) Total estimated manufacturing costs Estimated total machine hours Plantwide mfg. overhead rate pul 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. Print Done Data Table X an Description of Cost Pool Machine maintenance costs Engineering change orders Hazardous waste disposal Total overhead cost.. Estimated Cost Cost Driver $ 300,000 Number of machine hours $ 280,000 Number of change orders 1,250,000 Pounds of hazardous materials generated 1,830,000 Estimated Activity for this Year 15,000 4,000 $ 5,000 $ Print Done Data Table X 300 pounds of direct materials at $50 per pound 50 direct labor hours used at $40 per labor hour 120 machine hours used 11 change orders 60 pounds of hazardous waste generated Print Done Requirements Es Act th n 1a 1. Calculate the cost of Job 351 using the traditional plantwide manufacturing overhead rate based on machine hours. 2. Calculate the cost of Job 351 using activity-based costing. 3. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? ng Print Done