Question

Please help me solve this.
Holiday 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 $970,000 in total manufacturing overhead costs in the upcoming year and will use 10,000 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 356 is started and completed. Usage for this job follows: (Click the icon to view the usage for Job 356.) Read the requirements. ACLIVILY CUST I = Total est activity cost pool 400,000 Mach, maintenance Eng. change orders Waste disposal $ $ Total est. activity allocation base 10,000 3,000 allocation rate per MH 50 per order 280 per pound 150,000 420,000 = = $ $ 1,500 Calculate the cost of Job 356 using activity-based costing. Job Cost Record JOB 356 Maintenance costs Manufacturing Costs 1200 450 16,800 Engineering costs Waste disposal costs 19650 Total job cost

Answer 1

Activity cost allocation rate	Total estimated activity cost pool/Total estimated activity allocation base
Description of cost pool	Total estimated activity cost pool	Total estimated activity allocation base	Activity cost allocation rate
Machine maintenance costs	$400,000	10000	$40
Engineering change orders	$150,000	3000	$50
Hazardous waste disposal	$420,000	1500	$280
The cost of job 356 includes direct material, labor and overhead costs
Cost of job 356 is shown below
	Manufacturing costs
Direct materials	$10,150	(290*35)
Direct labor	$400	(20*20)
Manufacturing overhead	$19,650	(60*40)+(9*50)+(60*280)
Total costs of job	$30,200