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University Of Tasmania Operations And Supply Chain Management Assignment Help - Daffodil Company

Question - Daffodil 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 $640,000. Sphere uses a traditional costing system and assigns overhead based on direct
labor hours. Each unit of Planter would be assigned overhead of

(a) $20.00.

(b) $24.61.

(c) $40.00.

(d) Need more information to compute.

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