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Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,770,000 Hazardous waste disposal costs
Smythe Co. makes furniture. The following data are taken from its production plans for the year.
Direct labor costs | $ | 5,770,000 | |
Hazardous waste disposal costs | 610,000 | ||
Chairs | Tables | |||
Expected production | 202,000 | units | 18,000 | units |
Direct labor hours required | 256,000 | DLH | 16,000 | DLH |
Hazardous waste disposed | 500 | pounds | 800 | 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 0 Direct labor costs Product Activity Driver OH $ per direct labor hour Units Produced OH Cost per unit Total Overhead Cost $ 0 0 Chairs Tables $ $ 0.00 0.00 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. 0 Product Activity Driver OH Cost per unit OH $ per pound $ Total Overhead Cost $ Units Produced 0 0 Chairs Tables 0.00 0.00 0 0
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