Question

Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwid...

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
C GC S
Direct materials $ 100.00 $ 72.00 $ 48.00
Direct labor 42.00 31.50 12.00
Overhead 28.00 21.00 14.00
$ 170.00 $ 124.50 $ 74.00
Machine hours 4 2 3
Number of cases (per year) 300 500 600

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

0 0
Add a comment Improve this question Transcribed image text
Answer #1

total overhead = 28 + 21 + 14 = 63

total machine hour is 4+2+3 = 9

overhead rate per machine hour = total overhead cost / total machine hour

= 63 / 9

= 7 per machine hour

Add a comment
Know the answer?
Add Answer to:
Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwid...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation...

    Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of $6 per direct labor hour. Loren is the department manager of the Makeup Department which produces Products- Concealer (C) and Glow Cream (GC). Jennifer is the department manager of the Hair Care Department which manufactures Product Shampoo (S). The product costs (per case of 24 bottles) and other information are as follows: Products GC 115.00 $...

  • Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation...

    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 which produces Products – Concealer (C) and Glow Cream (GC). Jennifer is the department manager of the Hair Care Department which manufactures Product – Shampoo (S). The product costs (per case of 24 bottles) and other information are as follows: Products C...

  • Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation...

    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 C...

  • Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation...

    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 C...

  • Swiss Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation...

    Swiss Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead at a rate of 59 por derec manager of the Makeup Department that produces Products - Concealer and Glow Cream (GC Jennifer is the department manager of the Mar Care Department that manufactures Prot case of 24 bottles) and other information are as follows: h o o Lorenthede rs The producto Products Direct materials Direct labor Overhead $95.00 46.00 28.ee...

  • Question 7 Xcelerate Productions Limited manufactures and sells three different products of different qualities. They are...

    Question 7 Xcelerate Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Variable costs per unit Contribution margin per unit Machine hours required Normal $31.00 $26.00 $5.00 0.02 High $42.00 $35.00 $7.00 0.04 Superior $52.00 $48.00 $4.00 0.08 Determine the contribution margin per machine hour. (Round answers to 2 decimal places, e.g. 15.25.) Contribution Margin Normal per machine hour...

  • Ugly Australian Instructor Cosmetic Screening Limited uses direct labour-hours as the basis for allocating overhead on...

    Ugly Australian Instructor Cosmetic Screening Limited uses direct labour-hours as the basis for allocating overhead on a plantwide basis. The company is considering the switching to a department basis of overhead allocation with the Cosmetic Department using cosmetic machine-hours and the Screening Department using screening machine hours. At the beginning of 2021, the company made the following estimates: Department Cosmetic Screening Direct General Labour Hours 85.000 35.00 Direct Cosmetic Machine-hours 106,000 98 Direct Screening Machine-hours 1,400 298,000 Total Fixed Indirect...

  • Single Plantwide Factory Overhead Rate SpottedCow Dairy Company manufactures three products-whole milk, skim milk, and cream-in...

    Single Plantwide Factory Overhead Rate SpottedCow Dairy Company manufactures three products-whole milk, skim milk, and cream-in two production departments. Blending and Packing. The factory overhead for Spotted Com Dalry is $299,700 The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Blending Department Whole milk Packing Deltme Required: 1. Determine the single plantede factory overhead rate using each of the following allocation bases: (a) direct labor hours...

  • Single Plantwide Factory Overhead Rate Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers, valve covers,...

    Single Plantwide Factory Overhead Rate Gwinnett County Chrome Company manufactures three chrome-plated products-automobile bumpers, valve covers, and wheels. These products are manufactured in two production departments (Stamping and Plating). The factory overhead for Gwinnett County Chrome is $239,200. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours 810 Stamping Department Automobile bumpers Valve covers Wheels 570 590 310 350 1.250 620 2,000 1,150 Plating Department Automobile...

  • Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and...

    Single Plantwide Factory Overhead Rate Spotted Cow Dairy Company manufactures three products—whole milk, skim milk, and cream—in two production departments, Blending and Packing. The factory overhead for Spotted Cow Dairy is $352,800. The three products consume both machine hours and direct labor hours in the two production departments as follows: Direct Labor Hours Machine Hours Blending Department Whole milk 250 630 Skim milk 270 580 Cream 220 230 740 1,440 Packing Department Whole milk 310 360 Skim milk 490 450...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT