3. You did well and are moving up with all your lifelines. Now, Owl Water Bottles needs you go figure out the machine hours needed for its energy water bottle case. The company uses a plantwide overhead rate based on machine hours and gives you the following data for the energy water cost: direct materials $25, direct labor $10, total overhead for production run $500, estimated hours 250 hours. The total cost is $39 for the water bottle. The number of machine hours for a case is? a. 1 machine hours per case b. 2 machine hours per case c. 3 machine hours per case d. 4 machine hours per case 4. Owl Water Bottles is growing and realizes it should step up to activity based costing. They are now making Plain Water, Energy Water, and Vitamin Water. Based on the following data, can you calculate the activity rate for Energy Water? Expected cost Plain Energy Vitamin Machine hours 3,000 5,000 4,000 24,000 a. $8.00/MH b. $6.00/MH c. $4.80/MH d. $2.00/MH 5. Using ABC, how much overhead is assigned to the Energy Water? Amount of driver Cost Energ Vitami Driver Pool Plain y n 3,00 Machine hours 24,000 0 4,000 5,000 Production runs 5,000 400 200 400 a. 8,000 b. 9,000 C. 10,000 d. Red Bull gives you wings....annddd...I'm flying outta here! 5