Question

Bradley Company produces two products, Seed and Feed. Seed is a high-volume item totaling 20,000 units annually. Feed is a low-volume item totaling only 6,000 units per year. Seed requires one hour of direct labor for completion, while each unit of Feed requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $960,000. Bradley uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of Feed would be assigned overhead of

Answer 1

I thiknk yjour answer is wrong.Why are you using direct labor hours and not using total annual direct labor hours. I think it should be solve this way --> $960,000/32,000TDLHs =$30