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 $740000. Hartley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Planter would be assigned overhead of..?

The expected annual manufacturing overhead costs are $740000. The total annual direct labor hours are 32000. Flower requires 1 hour of direct labor for completion, while each unit of Planter requires 2 hours.

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base= 740000/32000= $23.125 per hour

Now we can allocate MOH Flower and Planter:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Planter= 23.125* 12000= $277,500/6000 units= $46.25