Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,890,000 Hazardous waste disposal costs 610,000 Chairs Tables Expected production 213,000 units 16,000 units Direct labor hours required 270,000 DLH 15,200 DLH 400 pounds Hazardous waste disponed 200 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. 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.

Smythe Co. makes furniture. The following data are taken from its production plans for the year. Direct labor costs $5,890,000 Hazardous waste disposal costs 610,000 Chairs Tables Expected production 213,000 units 16,000 units Direct labor hours required 270,000 DLH 15,200 DLH 400 pounds Hazardous waste disponed 200 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. 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
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Ans
The company's direct labor costs were $1,353,600 and its total a st of goods manu- percentage of direct labor costs. The ending inventories include the following'costs: Problem 2-5 Detomining Cosł ol Goods Sold factured was $4,820,000 for the year. Manufacturing overhead costs are a constant · materials ($192,200), work in process ($128,000), and finished goods ($236,000). pany's 1990 manufacturing performance. The beginning inventories included raw The treasurer of Halc Company has accumulated cost data concerning the com $1,353,600 and its total a st of goods manu- The company's direct labor costs were Raw Work in Process Finished Materials Goods $176,000 $44,000 44,800 $ 60,000 52,800 79,200 $192,000 Raw materials Direct labor. Manufacturing overhead Tatal ending inventory. $176,000 Required: Prepare a schedule showing the cost of goods sold for 1990.
The Cost of Goods Sold was