Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $ 5,400,000 Hazardous waste disposal costs 610,000 Chairs Tables Expected production 219,000 units 12,000 units Direct labor hours required 254,000 DLH 16,200 DLH Hazardous waste disposed 700 pounds 400 pounds

Question:

The question is incomplete. The complete data is given but what is required to be calculated wasn't stated. Find below the remaining part of the question and the answer.

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.

Waste disposal cost per unit for chairs = $2.668

Waste disposal cost per unit for tables = $3.105

Explanation:

Given data:

Direct labor costs                                 $ 5,400,000

Hazardous waste disposal costs          610,000

                                                     Chairs                   Table

Expected production                219,000 units       12,000 units

Direct labor hours required      254,000 DLH      16,200 DLH

Hazardous waste disposed      700 pounds         400 pounds

1.

Pre-determined     =       Total           ÷                 Total direct

overhead rate                 overhead                       labor hours

                               =       610,000                         270,200

                                                                              (254,000+16,200)

                               =     $2.3 per hour

Product    Activity   OH and per          Total over-     Unit             OH cost

                 Driver    direct labor hr       head cost     produced     per unit

Chairs     254,000        $2.3                $584,200     219,000         $2.668

Table       16,200          $2.3                 $37,260        12,000           $3.105

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