80.2K

Verified Solution

Link Copied!

Holiday Industries manufactures a variety of custom products. The company has traditionaly used a place manufacturing overhead rate besed on machine hours to allocate manufacturing overhead to its products. The company estimates that it will inour $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 flow (Click the loon to view the expected sage and c) During the year. Job 350 is started and completed. Usage for the job folows (Click the loon to view the usage for Job Read the returners Requirement 1. Calculate the cost of Job: 356 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 marudung overheat, mg manufacturing Plantwide mfg overhead rate Requirements " 2 3. Calculate the cost of Job 366 using the traditional plantwide manufacturing overhead rate based on machine hours. Calculate the cost of Job 356 using activity-based costing If you were a manager, which cost estimate would provide you more usu information? How might you use this information? Print Done Data table 35 ad Estimated Activity for this Year. 10,000 ng manufacturing) Description of Cost Pool Estimated Cost Machine maintenance costs $ Cost Driver 400,000 Number of machine hours Engineering change orders $ 150,000 Number of change orders 3,000 $ Hazardous waste disposal 420,000 Pounds of hazardous materials generated 1,500 $ 970,000 Total overhead cost Print Done Hoilday Industries manufactures avanety of custom products. The company has traditionally de manufacturing overhead rate based on machine hours to allocate manufacturing overhead to its products. The company estimates that & wit incur $970,000 in a manufacturing overhead costs in the upcoming year and will use 10.000 machine hours Click the icon to view the additional maten about the hazenius waste disposal le Expected usage i During the year, Joe 356 is started and completed Usage for this Dick the on to view the age for Jub 306) Requirement t. Calculate the cost of Job 350 using the traditional plantwide ma Begin by calculating the plantwide overhead rate First density the formula used Data table 290 pounds of direct marias a $35 per pound 20 direct labor sused at $20 60 machine hours used 9change orders 60 pounds of hazardous waste generated Print Done x MOH manufacturing overheat my manufacturing) Dover Pharmacy, part of a large chain of pharmacies, fills a variety of prescriptions for customers. The complexity of prescriptions filled by Dover varies widely; pharmacists can spend between five minutes and six hours on a prescription order. Traditionally, the pharmacy has allocated its overhead based on the number of prescriptions. The pharmacy chain's controller is exploring whether activity-based costing (ABC) may better allocate the pharmacy overhead costs to pharmacy orders. Cost Pools Pharmacy occupancy costs (utilities, rent, and other costs) Packaging supplies (bottles, bags, and other Total Annual Estimated Cost Cost Driver 102,000 Technician hours ... Total Annual Estimated Cost Driver Activity packaging) 45,600 Number of prescriptions.. $ Professional training and insurance costs. 180,000 Pharmacist hours $ 327,600 Total pharmacy overhead 85,000 24,000 20,000 Data table Technician Number of Pharmacist Hours Prescriptions Hours Customer Order Number 1247 Customer Order Number 1248 0.5 4 1.0 0.5 2 2.5 Print Done

Answer & Explanation Solved by verified expert

See Answer