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 C GC S Direct materials $ 90.00 $ 80.00 $ 42.00 Direct labor 50.00 30.00 15.00 Overhead 20.00 25.00 17.00 $160.00 $135.00 $74.00 Machine hours 5 3 4 Number of cases (per year) 350 550 650 If Flawless changes its allocation basis to machine hours, what is the total product cost per case for Product GC? a. $166.80 b. $156.20 c. $150.90 d. $125.90
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