G mycampus.ict.edu Smelly Perfume Company manufactures and distributes several d

Question

G mycampus.ict.edu Smelly Perfume Company manufactures and distributes several different products The company currenty uses a plant wide allocation method for allocating overhead at a rate of $5 per direct labor hour. Cindy Is the department manager of Department C which produces Products J and P. Department C has $13,200 In traceable overhead Diane is the department manager or Department D which manufactures Product X. Department D has $6,750 in traceable overhead. The product costs (per case of 24 bottles) and other Information are as folows: oducts $60.00 $43.00$29.00 Direct materials Direct labor Overhead 18.90 2.00 12.00 $9700 $7390I$4700 Machine hours (per case) Number of cases (per yea 500 600 If Smelly changes its allocation basis to machine hours, what is the total product cost per case for Product $101.20 O $70.00 O $48.15 O $97.00 O Type here to search hp

Explanation / Answer

Total overhead=(12*300)+(12*500)+(11*600)= $16200 Total machine hours=(4*300)+(2*500)+(3*600)= 4000 Overhead rate=16200/4000 = $4.05 Product J Direct materials 60 Direct labor 25 Overhead 16.2 =4.05*4 Product cost 101.2 Option 1 is correct

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.