Question

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 labor hours. Each unit of Planter would be assigned overhead of $26.15. need more information to compute. $42.50 $21.25 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air

Answer 1

Solo Estimated Manufacturing Overhead hate => Totad Estimated Overhead Costs Total Annual direct labor hours $ 680000 32,000 $21.25 per labor hour Each Wanit of planter assigned Overhead => = Estimated Manufacturing Overhead hatex Direct labor bove X 2 Hours $21.25 $ 42.50 Each weit of planter assigned Overhead of $42.50 So, the answer is (C.) $42.50

Alternative Method > Total Overhead Cost assigned to planter & - Totad direct labor hour x Estimated Manufacturingoverhead hate. $ 21, 25 12,000 Hour's x $ 255,000 Overhead Cost Assigned to Each Wiwit. oof planter => Total Overhead Cast Assigned to Plauter Number of units $255,000 6,000 $ 42.50