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Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,380,000 605,000
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,380,000 605,000 Tables 15,000 units 15,800 DLH Chairs Expected production Direct labor hours required Hazardous waste disposed 205,000 units 270,000 DLH 400 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. Activity Driver OH $ per direct labor hour Units Produced OH Cost per unit Product Total Overhead Cost 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 Activity Driver Units head Cost Produced OH Cost per unit Product OH $ per pound Total Over Chairs Tables
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