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. Estimated Activity for this Year 9,000 6,000 Description of Cost Pool Estimated Cost Cost Driver Machine maintenance costs .... $ 90,000 Number of machine hours. Engineering change orders... 120,000 Number of change orders Pounds of hazardous materials Hazardous waste disposal $ 825,000 generated.... Total overhead cost.. 1,035,000 2,500 $ Print Done 11 Mach, maintenance Eng. change orders Waste disposal Activity cost allocation rate per MH per order per pound Calculate the cost of Job 352 using activity-based costing. Job Cost Record Manufacturing JOB 352 Costs Choose from any list or enter any number in the input fields and then continue to the next question. 11 Mach, maintenance Eng. change orders Waste disposal Activity cost allocation rate per MH per order per pound Calculate the cost of Job 352 using activity-based costing. Job Cost Record Manufacturing JOB 352 Costs Choose from any list or enter any number in the input fields and then continue to the next question. Skath 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 $1,035,000 in total manufacturing overhead costs in the upcoming year and will use 9,000 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 352 is started and completed. Usage for this job follows: Click the icon to view the usage for Job 352.) Read the requirements. 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 Il Calculate the cost of Job 352. Job Cost Record Manufacturing JOB 352 Costs 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. Estimated Activity for this Year 9,000 6,000 Description of Cost Pool Estimated Cost Cost Driver Machine maintenance costs .... $ 90,000 Number of machine hours. Engineering change orders... 120,000 Number of change orders Pounds of hazardous materials Hazardous waste disposal $ 825,000 generated.... Total overhead cost.. 1,035,000 2,500 $ Print Done 11 Mach, maintenance Eng. change orders Waste disposal Activity cost allocation rate per MH per order per pound Calculate the cost of Job 352 using activity-based costing. Job Cost Record Manufacturing JOB 352 Costs Choose from any list or enter any number in the input fields and then continue to the next question. 11 Mach, maintenance Eng. change orders Waste disposal Activity cost allocation rate per MH per order per pound Calculate the cost of Job 352 using activity-based costing. Job Cost Record Manufacturing JOB 352 Costs Choose from any list or enter any number in the input fields and then continue to the next question. Skath 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 $1,035,000 in total manufacturing overhead costs in the upcoming year and will use 9,000 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 352 is started and completed. Usage for this job follows: Click the icon to view the usage for Job 352.) Read the requirements. 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 Il Calculate the cost of Job 352. Job Cost Record Manufacturing JOB 352 Costs
