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Current Attempt in Progress Vaughn 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 one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Estimated annual manufacturing overhead costs are $1020000. Vaughn uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $31.88. O $39.23. O $63.75. O need more information to compute.

Current Attempt in Progress Vaughn 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 one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Estimated annual manufacturing overhead costs are $1020000. Vaughn uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $31.88. O $39.23. O $63.75. O need more information to compute.

FINANCIAL ACCOUNTING
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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Current Attempt in Progress Vaughn 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 one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Estimated annual manufacturing overhead costs are $1020000. Vaughn uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $31.88. O $39.23. O $63.75. O need more information to compute.
Transcribed Image Text:Current Attempt in Progress Vaughn 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 one hour of direct labor for completion, while each unit of Planter requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Estimated annual manufacturing overhead costs are $1020000. Vaughn uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $31.88. O $39.23. O $63.75. O need more information to compute.
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