Business, 11.11.2019 21:31 burritomadness

Smelly perfume company manufactures and distributes several different products. they currently use a plant-wide allocation method for allocating overhead at a rate of $7 per direct labor hour. cindy is the department manager of department c which produces products j and p. diane is the department manager of department d which manufactures product x. the product costs (per case of 24 bottles) and other information are as follows:

j p x

direct materials $100.00 $ 72.00 $48.00

direct labor 42.00 31.50 12.00

overhead 28.00 21.00 14.00

$170.00 $124.50 $74.00

machine hours 4 2 3

number of cases (per year) 300 500 600

1. if smelly changes its allocation basis to machine hours, what is the total product cost per case for product p?

a. $163.50

b. $144.00

c. $138.15

d. $117.15

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Smelly perfume company manufactures and distributes several different products. they currently use a...

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