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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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