8.

Smythe Co. makes furniture. The following data are taken from its production plans for the year.

Direct labor costs	$	5,490,000
Hazardous waste disposal costs		615,000

	Chairs		Tables
Expected production	214,000	units	19,000	units
Direct labor hours required	272,000	DLH	15,400	DLH
Hazardous waste disposed	700	pounds	200	pounds

Required:

1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours.
Product	Activity Driver	OH $ per direct labor hour	Total Overhead Cost	Units Produced	OH Cost per unit
Chairs
Tables
2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of.
Product	Activity Driver	OH $ per pound	Total Overhead Cost	Units Produced	OH Cost per unit
Chairs
Tables