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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 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
5
Direct materials
$100.00
$ 78.00
$50.00
Direct labor
48.00
30.50
14.00
Overhead
30.00
24.00
16.00
$178.00
$132.50
$80.00
Machine hours
4
2
3
Number of cases (per year)
300
500
600
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