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Hercules Hair Restorer Inc

Question 5

Multiple Choice

Hercules Hair Restorer Inc.(HHRI) makes many varieties of hair restoration products which are sold under well-known marketing labels.A single batch contains 10,000 8-oz.bottles and takes two days to make.Typically 15 batches are completed per month,for different brands.Basic cost data for the month of January appears below. Hercules Hair Restorer Inc.(HHRI) makes many varieties of hair restoration products which are sold under well-known marketing labels.A single batch contains 10,000 8-oz.bottles and takes two days to make.Typically 15 batches are completed per month,for different brands.Basic cost data for the month of January appears below.   If overhead for January is calculated per machine hour,which is false? (Do not round your intermediate calculations. )  A) The hourly overhead absorption rate will be $275.17 per machine hour B) The overhead per bottle remain the same C) The full cost of 20 bottles is $385.80 D) The hourly overhead absorption rate will increase to $2,201.33 E) (c) and (d) only If overhead for January is calculated per machine hour,which is false? (Do not round your intermediate calculations. )


A) The hourly overhead absorption rate will be $275.17 per machine hour
B) The overhead per bottle remain the same
C) The full cost of 20 bottles is $385.80
D) The hourly overhead absorption rate will increase to $2,201.33
E) (c) and (d) only

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