chapter 17

Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,348,000 615,000 Expected production Direct labor hours required Hazardous waste disposed Chairs 219,000 units 256,000 DLH 200 pounds Tables 21,000 units 16,400 DLH 1,100 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 S 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 Units Produced Activity Driver OH $ por pound Total Overhead Cost OH Cost per unit Chairs Tables