Sorrentino 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. i (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. More info The company estimates that it will incur $790,000 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. Print Done Requirements 1. 2. 3. Data table More info Description of cost pool Estimated Cost Machine maintenance costs $ Cost driver Number of machine 300,000 hours Estimated activity for the year 250 pounds of direct materials at $65 per pound 10,000 40 direct labor hours used at $50 per labor hour 100 machine hours used Engineering change orders $ Number of change 100,000 orders 5,000 12 change orders Hazardous waste disposal $ 390,000 Pounds of hazardous materials generated 60 pounds of hazardous waste generated 1,500 $ 790,000 Total overhead cost 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? Print Done Print Done Print Done