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Smythe Co. makes furniture. The following data are taken from its production plans for the year. $5,860,000 615,000 Direct labor costs Hazardous waste disposal costs
Smythe Co. makes furniture. The following data are taken from its production plans for the year. $5,860,000 615,000 Direct labor costs Hazardous waste disposal costs Tables Chairs 16,000 units Expected production Direct labor hours required Hazardous waste disposed 213,000 units 256,000 DLH 500 pounds 15,400 DLH 500 pounds 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. 0 OH Cost per unit Units Produced OH $ per direct labor hour Activity Driver Total Overhead Cost Product C 0 0.00 Chairs 0 0 $ $ 0.00 Tables 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are number of pounds disposed of. assigned based on the 0 OH Cost per unit Units Produced Activity Driver Total Overhead Cost OH $ per pound Product 0.00 $ Chairs C 0.00 Tables 3. Which method is better for assigning costs to each product? Assignment based on direct labor hours Assignment based on the number of pounds
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