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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:12. 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 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 and
assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of
a. need more information to compute.
b. $60.
C $30.
d. $36.92.
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