Solution-What is the overhead rate per machine hour

What is the overhead rate per machine hour

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Reference no: EM132655838

Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $5 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
	C	GC	5
Direct materials	$100.00	$ 78.00	$50.00
Direct labor	48.00	30.50	14.00
Overhead	30.00	24.00	16.00
	$178.00	$132.50	$80.00
Machine hours	4	2	3
Number of cases (per year)	300	500	600

Problem 1: Based on this information, if Flawless changes its allocation basis to machine hours, what is the overhead rate per machine hour?

Reference no: EM132655838

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What is the overhead rate per machine hour

Reference no: EM132655838

Reference no: EM132655838

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