Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $6 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:

Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour?
$7.150
$2.00
$3.00
$20.00

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Products GC 77.00 Direct materials 90.00 47.00 44.00 32.00 Direct labor 11.00 Overhead 30.00 20.00 16.00 $ 164.00 $ 129.00 74.00 Machine hours 4 3 Number of cases (per year) 300 500 600 %24 2. %24