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Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,420,000 620,000 Hazardous waste disposal costs
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,420,000 620,000 Hazardous waste disposal costs Chairs Expected production 211,000 units Tables 16,000 units 16,400 DLH 256,000 DLH Direct labor hours required Hazardous waste disposed 600 pounds 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. OH $ per direct Product Activity Driver Total Overhead Cost Units Produced OH Cost per unit labor hour 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 wwwwww *****
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