Hercules Hair Restorer Inc If HHRI Uses a Plant-Wide Rate Based on a Single

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. HHRI appoints a new CEO, who decides to increase production targets to 200 batches per year. She also hires a management accountant who decides to apply normal costing and does some research into cost behavior. Basic product data still applies. New information appears below. $$\begin{array} { | l | r | c | } \hline \text { Estimated owerheads for year } & & \text { \% fixed } \\\hline \text { Supervision } & \$ 96,000 & 100 \% \\\hline \text { Indirect materials } & \$ 30,800 & 60 \% \\\hline \text { Equipment depreciation } & \$ 126,240 & 100 \% \\\hline \text { Equipment repairs } & \$ 48,000 & 30 \% \\\hline \text { Plant managers salary } & \$ 84,500 & 100 \% \\\hline \text { Utilities } & \underline{\$ 27,000} & 20 \% \\\hline & \$ 412,540 & \\\hline\end{array}$$ If HHRI uses a plant-wide rate based on a single cost pool, which of the following statements is true?

A) The overhead rate is $35.564 per hour
B) If machine hours are used as the cost driver, the overhead rate is $41.254 per hour
C) If machine hours are used as the cost driver, the full cost per bottle is $19.762
D) If direct labor hours are used as the cost driver, the full cost per batch $192,762.70
E) (c) and (d) only