Reference: Accounting for Decision Making and Control 10th Edition by Jerold Zimmerman

Please Help me with this practice question

Hercules Hair Restorer Inc. (HHRI) makes many varieties of hair restoration products which are sold under wellsknown marketing labels. A single batch contains 10,000 8702. bottles and takes two days to make. Typically 15 batches are completed per month, for different brands. Basic cost data forthe month oiJanuary a ppears below. Hair by Zeus Bottle Batch Oil, fl. oz. 2 Lotion, fl. oz. 4 Zeus potion, fl. 02. 1/4 Alcemena scent 1/16 Bottle, cap, label 1 Direct labor, hour 56 Machine hours 8 Cost per January's other expenses $ 3 Supervision $8,666 $ 1 Indirect materials $ 2,266 $ 24 Equipment deprec & repairs $14,526 $ 48 Plant manager's salary $ 6,566 $6.4 Utilities $ 1,866 $ 14 $33,929 Hercules Hair Restorer Inc. (HHRI) appoints a new CEO, who decides to increase production targets to 200 batches per year. She also hires a management accountant who decides to apply fixed overhead based on normal capacity and does some research into cost behavior. Basic product data still applies. New information appears below. Estimated overhead 'For year Supervision $ 96,666 Indirect materials $ 36,866 Equipment depreciation $126,246 Equipment repairs :5 48,666 Plant manager's salary $ 84,566 Utilities $ 27,666 $412, 546 % 'Fixed 166 66 166 36 166 26 If HHRI uses for overhead allocation a dual rate system, whereby xed overhead is allocated on the basis of direct labor hours and variable overhead is allocated on the basis of machine hours. which is true? (Do not round your intermediate calculations.) Multiple Choice 0 If this scheme is employed. the full cost per batch is $196,762.70 The overhead rate per DLH is $29743 The hourly variable overhead rate is $34502 The hourly fixed overhead rate is $215638 None of the choices are correct OOOO