Question

finish the following requirements given the below information

Score: 0 of 5 pts < 2 of 6 (0 complete) HW Score: 0%, 0 of 30 E4-21A (similar to) Question Help Scofield 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 $2.250.000 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 350 is started and completed. Usage for this job follows: B Click the icon to view the usage for Job 350.) Read the requirements Requirement 1. Calculate the cost of Job 350 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 0 Data Table 0 Data Table Requirements Estimated Activity 250 pounds of direct materials at $55 per pound for this Year 1. 70 direct labor hours used at $35 per labor hour 100 machine hours used 11 change orders 80 pounds of hazardous waste generated 15,000 4,000 Calculate the cost of Job 350 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 350 using activity-based costing. If you were a manager, which cost estimate would provide you more useful information? How might you use this information? Description of Cost Pool Estimated Cost Cost Driver Machine maintenance costs.... 900,000 Number of machine hours Engineering change orders ....S 360,000 Number of change orders Pounds of hazardous materials Hazardous waste disposal ....... 990,000 O generated Total overhead cost $ 2,250,000 ......... 2. 3. 3,000 Print Done Print Done Print Done 0 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 Choose from any drop-down list and then click Check Answer. s parts Clear All Check Answer O remaining

Answer 1

Part 1
	Plantwide Overhead Rate =Total Manufacturing Overhead Cost / Total Machine Hours
	Plantwide Overhead Rate =$2,250,000 / 15,000 hours =$150 per machine hours
	Calculation of Total Job Costs
	Direct Materials	$                                    13,750.00
	Direct labor	$                                      2,450.00
	Overhead Costs(100 hours*$150)	$                                    15,000.00
	Total Costs for Job 350	$                                    31,200.00
Part 2
	Computation of ABC rate
	Activity	OH Costs(Col 1)	No. of activity base(Col 2)	Activity Rate(Col 1 / Col 2)
	Machine Maintainance costs	$                                      9,00,000	15,000	$                             60.00	per machine hours
	Engineering change orders	$                                      3,60,000	4,000	$                             90.00	per change orders
	Hazardous waste disposals	$                                      9,90,000	3,000	$                           330.00	per pound of hazardous material
	Calculation of Overhead Costs
	Activity	Activity Base	Activity Rate	Overhead costs
	Machine Maintainance costs	100 Machine hours	$                                  60.00	$                        6,000.00
	Engineering change orders	11 Change orders	$                                  90.00	$                           990.00
	Hazardous waste disposals	80 pound of hazardous material	$                                330.00	$                      26,400.00
	Total Overhead costs allocated to Job 350			$                      33,390.00
	Calculation of Total Job Costs
	Direct Materials	$                                    13,750.00
	Direct labor	$                                      2,450.00
	Overhead Costs	$                                    33,390.00
	Total Costs for Job 350	$                                    49,590.00
Part 3	ABC system is more useful information as it takes into consideration all the actvities related to production