Question

The company has been excelentant cam micreased his x Data Table iati Description of cost pool Machine maintenance costs Engineering change orders Hazardous waste disposal Total overhead cost Estimated Cost Cost driver $ 600,000 Number of machine hours $ 60,000 Number of change orders 1,430,000 kg of hazardous materials generated $ 2,090,000 Estimated activity for this year 10,000 3,000 5,500 $ $ Print Done
These are attachments please open them and enlarge to view. Thanks and below are options to requirement 3.

Answer 1

Question 1

Plantwide Overhead Rate = Total Estimated Manufacturing Overheads / Total Estimated Machine Hours

Total Estimated Manufacturing Overheads = $ 20,90,000

Total Estimated Machine Hours = 10,000

Plantwide Overhead Rate = 20,90,000 / 10,000

Plantwide Overhead Rate = $ 209 per Machine Hour

Job Cost Calculation for Job 352

Particulars	Amount
Direct Materials	21,700
Direct Labour	1,650
Manufacturing Overhead Applied	21,945
Total Job Costs	45,295

Supporting Work

Direct Materials = 310 Kg @ $ 70 = $ 21,700

Direct Labour = 55 Hours @ $ 30 = $ 1,650

Manufacturing Overhead Applied = 105 Machine Hours * $ 209 = 21,945

Requirement 2

	A	B	C= A/B
Particular	Estimated Cost	Cost Driver Level	Activity Allocation Rate
Machine Maintenance Costs	600,000	10,000	60	Per Machine Hour
Engineering Change Orders	60,000	3,000	20	Per Change Order
Hazardous Waste Disposal	1,430,000	5,500	260	Per KG
Total Manufacturing Overhead	2,090,000

Job Cost Calculation as per Activity Based Costing

Particulars	Amount
Direct Materials	21,700
Direct Labour	1,650
Manufacturing Overhead Applied	26,040
Total Job Costs	49,390

Supporting Work

	1	2	3 =1*2
Particulars	Activity Allocation Rate	Cost Driver for Job 352	Total Costs
Machine Maintenance Costs	60	105	6,300
Engineering Change Orders	20	12	240
Hazardzous Waste Materials	260	75	19,500
Total Manufacturing Overheads for Job			26,040

Other Calculation already performed in Part 1.

Requirement 3

A) Activity Based Costing Rates.

B) Specific Resources Used by each product.

C) Price jobs based on more accurate costs.