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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 $7
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $7 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: C Direct materials Direct labor $ 95.00 Products GC $76.00 S $48.00 44.00 34.50 10.00 Overhead 24.00 19.00 15.00 $163.00 $129.50 $73.00 Machine hours Number of cases (per year) 5 250 3 450 4 550 Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour
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