Smelly Perfume Company Manufactures and Distributes Several Different Products

question 13

Multiple Choice

Smelly Perfume 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.Cindy is the department manager of Department C which produces Products J and P.Department C has $16,200 in traceable overhead.Diane is the department manager of Department D which manufactures Product X.Department D has $11,100 in traceable overhead.The product costs (per case of 24 bottles) and other information are as follows: If Smelly changes its allocation basis to machine hours,what is the total product cost per case for Product J?

• A)$161.50.
• B)$169.30.
• C)$182.44.
• D)$183.36.

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Definitions:

Testosterone

A steroid hormone produced mainly in the testes in males and the ovaries in females, playing a key role in the development of male reproductive tissues and secondary sexual characteristics.

Estrogen

A group of steroid hormones that play a critical role in the development and regulation of the female reproductive system and secondary sexual characteristics.

Cortisone

A glucocorticoid hormone used as a medication to treat inflammation, allergies, and rheumatoid arthritis among other conditions.

Cushing's Syndrome

A hormonal disorder caused by prolonged exposure of the body's tissues to high levels of the hormone cortisol.