Hartley Company Produces Two Products, Flower and Planter

question 70

Multiple Choice

Hartley 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 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

• A) $30.00.
• B) $36.91.
• C) $60.00.
• D) need more information to compute.

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Definitions:

Salivate

The secretion of saliva in the mouth, which can be an automatic response to the anticipation of food.

Lemon Juice

The liquid extract of the lemon fruit, known for its acidic taste and high vitamin C content.

Open-minded

Willingness to consider new ideas, perspectives, or possibilities without prejudgment.

Behavioral Style

A consistent pattern of actions and reactions exhibited by an individual across different situations.