Data table More info Estimated activity Description of cost pool Estimated Cost Cost driver for this year Machine maintenance costs $ 440,000 Number of machine hours 11,000 340 kg of direct materials @ $50 per kg 70 direct labour hours used @ $30 per labour hour Engineering change orders $ 300,000 Number of change orders 6,000 Hazardous waste disposal $ 910,000 Kg of hazardous materials generated 3,500 140 machine hours used 24 1,650,000 Total overhead cost 9 change orders 65 kg of hazardous waste generated Scannell Industries manufactures a variety of custom products. The company has traditionally used a plantwide manufacturing cverhead rate based an machine hours to allocate manufacturing overhead to its products. The company estimates that it will incur $1,650,000 in tolal manufacturing overhead costs in the upcoring year and will use 11,000 machine hours. Up to this point, hazardous waste disposal fees have been absorbed into the plantwide manufacturing overhead rate and allocated to all products as part af the manufacturing overhead pracess. Recently, the company has been experiencing significantly increased waste dispasal fees for hazardous waste generated by certain praducts, and as a result, profit margins on all products have been negatively impacted. Company management wants to implement an activity based costing syslem so that managers know the cost of each product, including its hazardcus waste disposal costs. Expected usage and costs for manufacturing overhead activities for the upcoming year are as follows: m(Cilick the lcon to view the expected usage and costs.) During the year, Job 356 is started and completed. Usage for this job follows: A (Click the icon to view the usage for Job 356.) Raquirements Requirement 1. Calculate the cost of Job 356 using the traditional plantwide manufacturing overhead rate based on machine hours. Begin by calculating the predetermined manufacturing overhead rate. First, identry the formula used to compute the predetermined manufacturing overheed rate, then compute the rate. (Abbreviations used: MOH = manufacturing overhead) - Predetermined manufacturing overhead rate Calculate the cost of Job 356. Job Cost Record Manufacturing JOB 356 Costs