Smelly Perfume Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $10 per direct labor hour. Cindy is the department manager of Department C which produces Products J and P. Department C has $19,200 in traceable overhead. Diane is the department manager of Department D which manufactures Product X. Department D has $9,000 in traceable overhead. The product costs (per case of 24 bottles) and other information are as follows:

			Products
	J		P		X
Direct materials	$110.00		$ 79.00		$53.00
Direct labor	46.00		34.65		13.00
Overhead	22.00		17.00		16.00
	$178.00		$130.65		$82.00
Machine hours (per case)	4		2		3
Number of cases (per year)	300		500		600

If Smelly changes its overhead allocation to departmental rates, what is the product cost per case for Product X assuming Departments C and D use direct labor hours and machine hours as their respective allocation bases?

rev: 11_18_2013_QC_40512

$82.00.

$84.54.

$69.00.

$81.00.