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Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $8

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Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $8 per direct labor hour. Loren is the department manager of the Makeup Department that produces Products - Concealer (C) and Glow Cream (GC). Jennifer is the department manager of the Hair Care Department that manufactures Product - Shampoo (S). The product costs (per case of 24 bottles) and other information are as follows: Products GC S Direct materials $120.00 $ 73.00 $44.00 Direct labor 46.00 34.00 9.00 Overhead 24.00 18.00 12.00 $190.00 $125.00 $65.00 Machine hours 4 2 3 Number of cases (per year) 300 500 600 Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour? $5.85 O $3.00 $18.00 O $2.00

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