Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units...
Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000 + 12000). Expected annual manufacturing overhead costs are $720000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of
a. need more information to compute.
b. $45.
c. $28.
d. $23.
Homework Answers
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Predetermined Overhead rate = Estimated overhead/Estimated direct labor hours = 720,000/32,000 = 22.50 per unit Overhead assigned per unit = 22.50*2 = 45 Option B is the answer |
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Hartley Company produces two products, Flower and Planter.
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View Policies Current Attempt in Progress Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 units annually. Planter a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct labor for completion, while each unit of Plant requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000 + 12000). Expected annual manufacturing overhead costs are $680000. Hartley uses a traditional costing system and assigns overhead based on direct...
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