Question
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,400,000 Hazardous waste disposal costs 615,000
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,400,000 Hazardous waste disposal costs 615,000 Chairs Expected production 203,000 units Direct labor hours required 268,000 DLH Hazardous waste disposed 500 pounds Tables 16,000 units 15,600 DLH 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. Product Activity Driver OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit 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. 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. Product +Activity Driver OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit 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. Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit Chairs Tables
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