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Exercise 17-13 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe...

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Exercise 17-13 Comparing costs under ABC to traditional plantwide overhead rate LO P1, P3 Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs Hazardous waste disposal costs $5,290,000 625,000 Expected production Direct labor hours required Hazardous waste disposed Chairs 206,000 units 260,000 DLH 300 pounds Tables 17,000 units 15,400 DLH 1,100 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 OH $ per direct labor hour Total Overhead Cost Units Produced OH Cost per unit 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

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