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
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
