12. Hartley Company produces two products, Flower and Planter. Flower is a high-volume item totaling 20000 unitsannually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct labor forcompletion, while each unit of Planter reguires 2 hours. Therefore, total annual direct labor hours are 32000 (20000.12000). Expected annual manufacturing overhead costs are $960000. Hartiey uses a traditional costing system andassigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead ofa. need more information to compute.b. $60.C $30.d. $36.92.

The overhead cost is allocated to production using predetermined overhead rate.

12. Hartley Company produces two products, Flower and Planter. Flower is a high-volume item tutaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct lr completion, whle each unit of Planter requires 2 hours. Therefore, total annual direct laber hours are 32000 (20 12000). Expected annual manufacturing overhead costs are $960000. Hartiey uses a traditional costing system assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead or a. need more information to compute. b. s60. C. 530. d. s36.92.

12. Hartley Company produces two products, Flower and Planter. Flower is a high-volume item tutaling 20000 units annually. Planter is a low-volume item totaling only 6000 units per year. Flower requires 1 hour of direct lr completion, whle each unit of Planter requires 2 hours. Therefore, total annual direct laber hours are 32000 (20 12000). Expected annual manufacturing overhead costs are $960000. Hartiey uses a traditional costing system assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead or a. need more information to compute. b. s60. C. 530. d. s36.92.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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