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: Products GC Direct materials C $100.00 S $ 69.00 $44.00 Direct labor Overhead 46.00 30.00 31.00 15.00 25.00 10.00 $176.00 $125.00 $69.00 Machine hours Number of cases (per year) 4 550 2 750 3 850 Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour? Multiple Choice $3.00 $2.00 $25.00 $7.00