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Exercise 17-13 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are taken from
Exercise 17-13 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,460,000 Hazardous waste disposal costs 610,000 Chairs Expected production 207,000 units. Direct labor hours required Hazardous waste disposed 256,000 DLH 400 pounds Tables 9,000 units 16,200 DLH 1,200 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. Overhead costs Direct labor hours $ 610,000 0 per direct labor dollar Product Activity Driver OH $ per direct Total Overhead Cost Units Produced OH Cost per unit labor hour Chairs Tables $ $ 0.00 $ 0.00 $ 0 0 0 0 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. Chairs Tables 0 Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit $ $ 0.00 $ 0.00 $ 0 0 0 0
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