View PoliciesCurrent Attempt in ProgressHartley Company produces two products, Flower andPlanter. Flower is a high-volume item totaling 20000 unitsannually. Planter is a low-volume item totaling only 6000unitsper year. Flower requires 1 hour of direct labor forcompletion, while each unit of Planter requires 2 hours.Therefore, total annual direct labor hours are 32000(20000+ 12000). Expected arnnual manufacturingoverhead costs are $660000. Hartley uses a traditionalcosting system and assigns overhead based on direct laborhours. Each unit of Planter would be assigned overhead ofO need more information to compute.O $25.38.O $20.63.O $41.25.

Question
Asked Oct 13, 2019
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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 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 requires 2 hours.
Therefore, total annual direct labor hours are 32000
(20000+ 12000). Expected arnnual manufacturing
overhead costs are $660000. Hartley uses a traditional
costing system and assigns overhead based on direct labor
hours. Each unit of Planter would be assigned overhead of
O need more information to compute.
O $25.38.
O $20.63.
O $41.25.
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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 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 requires 2 hours. Therefore, total annual direct labor hours are 32000 (20000+ 12000). Expected arnnual manufacturing overhead costs are $660000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O need more information to compute. O $25.38. O $20.63. O $41.25.

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Expert Answer

Step 1

Meaning of Direct labor overhead:

Direct Labor cost such as payment for production hours are directly tied to income, while labor overhead goes into bookkeeping, facility maintenance and any other work that doesn’t translate directly into production and revenue.

Step 2

Following are the Calculation of...

Calculation of Overhead Cost per unit:
$660,000
Overhead cost per hour=
32000 Hours
= $20.625 per hour
Overhead cost per unit= $20.625 per hour x 2 unit per hour
=$41.25
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Calculation of Overhead Cost per unit: $660,000 Overhead cost per hour= 32000 Hours = $20.625 per hour Overhead cost per unit= $20.625 per hour x 2 unit per hour =$41.25

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