Flawless Cosmetic Company Manufactures and Distributes Several Different Products

Multiple Choice

Flawless Cosmetic Company manufactures and distributes several different products.The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 per direct labor hour.Loren is the department manager of the Makeup Department which produces Products - Concealer (C) and Glow Cream (GC) .Jennifer is the department manager of the Hair Care Department which manufactures Product - Shampoo (S) .The product costs (per case of 24 bottles) and other information are as follows:

If Flawless changes its allocation basis to machine hours,what is the total product cost per case for Product GC?

A) $163.50
B) $144.00
C) $138.15
D) $117.15