Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,530,000 Hazardous waste disposal costs 610,000 Chairs Tables Expected production 201,000 units 20,000 units Direct labor hours required 264,000 DLH 16,200 DLH Hazardous waste disposed 300 pounds 800 pounds Required: 3. Which method is better for assigning costs to each product? Assignment based on direct labor hours Assignment based on the number of pounds

1. Determine the hazard waste disposal per coat per unit for chairs and tables if costs is assigned using single plantwide overhead rate based on direct labor hours

2. Determine the hazard waste disposal per coat per unit for chairs and tables if costs is assigned based on the number of pounds disposed of

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

• Assignment based on direct labor hours

• Assignment based on the number of pounds