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Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company sells the bags in cases of
Cooper's Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Cooper's Bags Company sells the bags in cases of 1,500 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Company uses a single plant wide overhead rate to allocate its $7,705,000 of annual manufacturing overhead. Of this amount, $2,260,000 is associated with the Large Bag line, $3,418,000 is associated with the Medium Bag line, and $2,027,000 is associated with the Small Bag line. Cooper's Bags Company is currently running a total of 44,000 machine hours: 14,000 in the Large Bag line, 15,900 in the Medium Bag line, and 14,100 in the Small Bag line. Cooper's Bags Company uses machine hours as the cost driver for manufacturing overhead costs The plant wide manufacturing overhead rate would be closest to OA. $214.97 per machine hour. 0 B. $51.36 per machine hour. C. $175 11 per machine hour D. $161.43 per machine hour
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