Exercise 17-16 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3, A1, A2

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

Direct labor costs	$	5,360,000
Hazardous waste disposal costs		610,000

	Chairs		Tables
Expected production	215,000	units	20,000	units
Direct labor hours required	264,000	DLH	15,800	DLH
Hazardous waste disposed	700	pounds	700	pounds

Required:

Chapter 17 Exercisesi Saved Help Save & Exit Submit Check my work 7 Exercise 17-16 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3, A1, A2 Smythe Co. makes furniture. The following data are taken from its production plans for the year. points $5,360,000 610,000 Direct labor costs Hazardous waste disposal costs Skipped Tables Chairs 20,000 units 15,800 DLH 700 pounds eBook 215,000 units Expected production Direct labor hours required Hazardous waste disposed 264,000 DLH 700 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. OH Cost per Activity Driver OH $ per direct labor hour Units Produced Hint Product Total Overhead Cost unit 0.00 $ Chairs 0 Hint 0.00 Tables Hint Hint 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. Hint 0 Activity Driver Units Produced OH Cost per Product OH $ per pound Total Overhead Cost Print unit $ $ 0.00 Chairs 0 0 References 0.00 $ $ 0 Tables 0 3. Which method is better for assigning costs to each product? Assignment based on the number of pounds Assignment based on direct labor hours