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 Hazardous waste disposal costs $5,290,000 625,000 Expected production Direct labor hours required Hazardous waste disposed Chairs 210,000 units 262,000 DLH 600 pounds Tables 13,000 units 15,800 DLH 500 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. Direct labor hours $ 2 s 1.00 Direct labor hours 2 Product Activity Driver OH S per direct labor hour Total Overhead Cost Units Produced OH Cost per unit Chairs 2 $ 1.00 $ 2 210,000 $ 0.00 Tables 2 $ 1.00 $ 2 13,000 $ 0.00 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 Number of pounds 0 Product Activity Driver Total Overhead Cost Units Produced OH Cost per unit Chairs Tables OH 5 per pound $ 0.00 $ 0.00 $ 0 $ 0 O Direct labor costs Hazardous waste disposal costs $5,290,000 625,000 Expected production Direct labor hours required Hazardous waste disposed Chairs 210,000 units 262,000 DLH 600 pounds Tables 13,000 units 15,800 DLH 500 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. Direct labor hours 2 s 1.00 Direct labor hours Product Activity Driver OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit Chairs 2 $ 1.00 $ 2 210,000 $ 0.00 Tables 2 $ 1.00 $ 2 13,000 $ 0.00 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. Number of pounds Product Activity Driver Units Produced OH Cost per unit OH per pound Total Overhead Cost $ 0.00 $ $ 0.00 $ 0 Chairs Tables 0 0 0