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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

1 Answer

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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.

Answer:

Waste disposal cost per unit for chairs = $2.668

Waste disposal cost per unit for tables = $3.105

Step-by-step 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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