JennerMaid Company Manufactures and Distributes Several Different Products Required:
A

Essay

JennerMaid Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $20 per direct labor hour. Department 1 produces Product X and has $256,000 in traceable overhead. Department 2 manufactures Products Y and Z and has $524,000 in traceable overhead. The product costs (per unit) and other information are as follows:
$\begin{array}{lccc}&&\text { Products }\\& \mathrm{X} & \mathrm{Y} & \mathrm{Z}\\ \text { Direct materials } & \$ 85.00 & \$ 74.00& \$ 66.00 \\ \text { Direct labor } & 42.00 & 31.50 & 22.00 \\ \text { Overhead } & 40.00 & 30.00 & 20.00 \\& \$ 167.00 & \$ 135.50& \$ 108.00\\\text { Machine hours (per unit) } & 4 & 2 & 3 \\\text { Number of cases (per year) } & 6,000 &10,000&12,000\end{array}$

Required:
a. If JennerMaid changes its allocation basis to machine hours, what is the overhead cost per unit for Product X, Y, and Z?
b. If JennerMaid changes its overhead allocation to departmental rates, what is the overhead cost per unit for Product X, Y, and Z, assuming Department 1 uses direct labor hours and Department 2 uses machine hours as their respective allocation bases? (round to four decimal places)