Flawless Cosmetic Company manufactures and distributes several different products.


Flawless Cosmetic Company manufactures and distributes several different products. The company currently uses a plantwide allocation method for allocating overhead

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at a rate of $7 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:


                                  C         GC       S

Direct materials                    $100.00    $ 72.00   $ 48.00

Direct labor                          42.00      31.50    12.00

Overhead                           28.00      21.00    14.00


                                   $ 170.00    $124.50  $ 74.00

Machine hours                         4         2         3

Number of cases (per year)              300       500       600

If Flawless changes its allocation basis to machine hours, what is the total product cost per case for Product GC?

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