Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide...
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Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $5 per direct labor hour. Loren is the department manager of the Makeup Department that produces Products - Concealer (C) and Glow Cream (GC). Jennifer is the department manager of the Hair Care Department that manufactures Product - Shampoo (S). The product costs (per case of 24 bottles) and other information are as follows: C Direct materials Direct labor Overhead $120.00 50.00 30.00 $200.00 Products CC $ 80.00 32.00 22.00 $134.00 2 S $ 45.00 10.00 14.00 $69.00 4 Machine hours Number of cases (per year) 300 500 600 Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour? Multiple Choice $710 Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour? Multiple Choice O $710 $3.00 O o $2.00 $22.00
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