Smythe Co. makes furniture. The following data are taken from its production plans for the year.

Direct labor costs	$	5,630,000
Hazardous waste disposal costs		615,000

	Chairs		Tables
Expected production	209,000	units	14,000	units
Direct labor hours required	258,000	DLH	16,000	DLH
Hazardous waste disposed	500	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.
		0
Product	Activity Driver	OH $ per direct labor hour	Total Overhead Cost	Units Produced	OH Cost per unit
Chairs		$0.00	$0		0
Tables		$0.00	$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.
		0
Product	Activity Driver	OH $ per pound	Total Overhead Cost	Units Produced	OH Cost per unit
Chairs		$0.00	$0		0
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