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Sebege industries manufactures s variety of custom products. The company has traditionally used a plantwide manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its producte. The company estimates that it will incur $$1,050,000$ in total manufacturing overhead costs in the upcoming year and will use $15,000$ machine hours.

Yew additional information.

Read the mouirements.

Requirement $1.$ Caloulate the cost of Job $352$ using the traditional plantwi

Begin by caloulating the plantwide overhead rate. First identify the formula manufacturing overhead$)$

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Guastion $3$

Requirements

Galculate the cost of Job $352$ using the traditional plantwide manufacturing overhead rate based on machine hours.

Galculate the cost of Job $352$ using activity$-$based costing.

Il you were a manager, which cost estimate would provide you more usoful information? How might you use this information?

Additional information

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.

Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows:

$\backslash$table$[[$Description of Cost Pool,Estimated Cost,Cost Driver,$\backslash$table$[[$Estimated$],[$Activity for$],[$this Year$]]],[$Machine maintenance costs,$$,600,000,$machine hours,$15,000],[$Engineering change orders,$$,140,000,$change orders,$2,000]]$

During the year, Job $352$ is started and completed. Usage for this job follows:

$330$ pounds of direct materials at $$55$ per pound

$60$ direct labor hours used at $$20$ per labor hour

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