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

Direct labor costs	$	5,340,000
Hazardous waste disposal costs		615,000

	Chairs		Tables
Expected production	210,000	units	17,000	units
Direct labor hours required	274,000	DLH	16,200	DLH
Hazardous waste disposed	400	pounds	700	pounds

Required:

3. Which method is better for assigning costs to each product?

• Assignment based on the number of pounds

• Assignment based on direct labor hours

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 S per direct Total Overhead Cost Produced OH Cost per unit Units Product Driver labor hour 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 Produced cost per unit Product OH $ per pound Total Overhead Cost Chairs Tables