Multiple Choice Question 43
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Hartley Company produces two products, Flower and Planter. Flower
is a high-volume item totaling 20,000 units annually. Planter is a lowvolume item totaling only 6,000 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 32,000 (20,000
+ 12,000). Expected annual manufacturing overhead costs are
$960,000. Hartley uses a traditional costing system and assigns
overhead based on direct labor hours. Each unit of Planter would be
assigned overhead of
need more information to compute.
$30.00.
$36.91.
$60.00.
$696,000.
$216,000.