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

Direct labor costs	$	5,540,000
Hazardous waste disposal costs		625,000

	Chairs		Tables
Expected production	207,000	units	16,000	units
Direct labor hours required	256,000	DLH	15,400	DLH
Hazardous waste disposed	300	pounds	1,000	pounds

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

multiple choice

a) Assignment based on the number of pounds

b) Assignment based on direct labor hours

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. Product Activity Driver OH $ per pound Total Overhead Cost Units Produced OH Cost per unit Chairs Tables