Hercules Hair Restorer Inc If the Same Dual Rate Scheme from Q5 Is Applied

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. The new CEO has decided that 25% of the production target of 200 batches per year will be a new product, whose information appears below. $$\begin{array} { | l | c | c | c | } \hline \text { Hair by Jove (new product) } & & & \\\hline & \begin{array} { c } \text { Qty per } \\\text { Bottle }\end{array} & \begin{array} { c } \text { Qty per } \\\text { Batch }\end{array} & \begin{array} { c } \text { Unit } \\\text { Cost }\end{array} \\\hline \text { Oil, fl. oz. } & 13 / 2 & & \$ 3.00 \\\hline \text { Lotion. fl. oz. } & 3 & & \$ 0.90 \\\hline \text { Jove potion. fl. oz. } & 1 / 8 & & \$ 24.00 \\\hline \text { Hera scent } & 1 / 8 & & \$ 60 \\\hline \text { Bottle, cap. label } & 1 & & \$ 0.40 \\\hline \text { Direct labor. hour } & & 60 & \$ 14.00 \\\hline \text { Machine hours } & & 6 & \\\hline\end{array}$$ If the same dual rate scheme from Q5 is applied, which is true?

A) The introduction of the Jove product will not affect the costing of the Zeus product
B) The introduction of the Jove product will cause the rate per labor hour to increase
C) The introduction of the Jove product will cause the rate per machine hour to fall
D) Full cost for the Zeus product will change, but by more than 2 cents per bottle
E) None of the above