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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. 625,000 Expected production Chairs 211,000 units Direct labor hours required 272,000 DLH Hazardous waste disposed 500 pounds Tables 13,000 units 15,400 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. Chairs Tables Product Activity Driver OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit 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. Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit Chairs Tables
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