Smelly Perfume Company Manufactures and Distributes Several Different Products

question 48

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

• A)$117.15.
• B)$163.50.
• C)$121.50.
• D)$138.15.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

Artificial Response

A reaction or answer that is fabricated or not naturally occurring, often as a result of outside manipulation or prompting.

Classical Conditioning

An acquisition of knowledge method where an environmental trigger is connected to an innate stimulus.

Classical Conditioning

An educational mechanism where a response originally provoked by a second stimulus eventually comes to be provoked by the first stimulus alone, through the continuous pairing of two stimuli.