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

$80 ($960,000 / 12,000 DLHs).

Answer 2

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

Answer 3

You are correct. I apologize for my mistake. The overhead cost per unit of Feed would be $30, calculated as follows:

Total overhead cost for the year = $960,000
Total annual direct labor hours = 32,000 (20,000 for Seed + 12,000 for Feed)
Overhead cost per direct labor hour = $960,000 / 32,000 = $30
Each unit of Feed requires 2 hours of direct labor, so its overhead cost per unit would be 2 x $30 = $60.