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Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs...... Hazardous waste disposal costs. $5,870,000 630,000
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs...... Hazardous waste disposal costs. $5,870,000 630,000 Exercise 17-16 Comparing costs under ABC to traditional plantwide overhead rate P1 P3 A1 A2 Chairs Tables Expected production.. Direct labor hours required Hazardous waste disposed 211,000 units 254,000 DLH 200 pounds 17.000 units 16,400 DLH 800 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. 2. Determine hw.ardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of. 3. Which method is better for assigning costs to each product? Explain. Check (2) Tables $29.65 per unit
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