1. 2. 3. 4. 5. Hartley Company produces two products, Flower and Planter. Flower

Question

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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 annual manufacturing overhead costs are $840000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of O $32 $53. Oneed more information to compute O $26

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

Overhead absorption rate

= Budgeted Overhead / Budgeted labor hours

= $840,000 / 32,000

= $26.25

So, Overhead cost to be assigned to product Planter

= Overhead per labor hour x Number of labor hours

= $26.25 x 2

= $52.5 or $53

So, as per above calculations, option B is the correct option

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