Lily company produces two products, flower and planter. Flower is a high volume item totaling 20,000 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 two hours therefore total annual direct labor hours are 32,000 (20,000 + 12,000). Estimated annual manufacturing overhead costs are 680,000. Lily uses a traditional costing system and assigns overhead based on direct labor hours, each unit of planter would be assigned overhead of View PoliciesO $21.25.O $26.15.O $42.50.O need more information to compute.Current Attempt in ProgressLily 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 Planterrequires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Estimated annual manufacturing overheadcosts are $680000. Lily uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter wouldbe assigned overhead ofeTextbook and Media5Save for Later||Attempts: 0 of 3 used Submit Answer

Lets understand the basics. There are basically two costing systems are followed which are, (1)…

Answered: Lily Company produces two products,…

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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Lily company produces two products, flower and planter. Flower is a high volume item totaling 20,000 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 two hours therefore total annual direct labor hours are 32,000 (20,000 + 12,000). Estimated annual manufacturing overhead costs are 680,000. Lily uses a traditional costing system and assigns overhead based on direct labor hours, each unit of planter would be assigned overhead of

View Policies
O $21.25.
O $26.15.
O $42.50.
O need more information to compute.
Current Attempt in Progress
Lily 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 $680000. Lily uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would
be assigned overhead of
eTextbook and Media
5
Save for Later
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Attempts: 0 of 3 used Submit Answer

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