Smelly Perfume Company Manufactures and Distributes Several Different Products

question 69

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: Department D has recently purchased and installed new computerized equipment for Product X.This equipment will increase the overhead costs by $2,700 and decrease labor costs (due to time savings) in Department D by $3.00 per case.Machine hours will not change.If Smelly uses a plantwide rate based on machine hours,what is the revised product cost per case for Product J?

• A)$161.50.
• B)$169.30.
• C)$172.00.
• D)$183.36.

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Definitions:

Conventional Antipsychotic

A group of older antipsychotic drugs primarily used to treat symptoms of psychosis, such as those found in schizophrenia.

Extrapyramidal Side Effect

Unwanted movements or other physical disturbances caused by the use of certain medications, notably those used for psychiatric conditions.

Agranulocytosis

A life-threatening drop in white blood cells. This condition is sometimes produced by the second-generation antipsychotic drug clozapine.

Clozapine

An antipsychotic medication used primarily to treat severe schizophrenia, especially in cases where other medications have failed, noted for its potential to reduce the risk of suicidal behavior.