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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 $5,530,000 61
Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,530,000 61 , Expected production Direct labor hours required Hazardous waste disposed Chairs 203,880 units 258,00 DLH 408 pounds Tables 22, e80 units 16,000 DLH 5e9 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. Product Activity Driver Units Produced OH Cost per unit 0 OH $ per direct labor hour Total Overhead Cost 0.00 $ 0 $ 0.00 $ 0 Chairs Tables 0 2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the Help Tables $ 0.00 S 0 0 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 S per pound Total Overhead Cost Units Produced OH Cost per unit $ 0.00 $ 0 0 Chairs Tables $ 0.00 $ 0 0 3. Which method is better for assigning costs to each product? Assignment based on the number of pounds Assignment based on direct labor hours
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