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go Cheezy Snack produces rice crackers, wheat crackers, and com crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a
go Cheezy Snack produces rice crackers, wheat crackers, and com crackers on three different production lines in the same manufacturing facility. Currently Cheezy uses a single plantwide overhead rate to allocate its $3,119,000 of annual manufacturing overhead. Of this amount, $800,000 is associated with the rice cracker line, $1,419,000 with the wheat cracker line, and $900,000 with the corn cracker line. Cheezy's plant is currently running a total of 20,000 machine hours: 6,400 in the rice cracker line, 8,600 with the wheat cracker line, and 5,000 with the corn cracker line. Cheezy's considers machine hours to be the cost driver of MOH costs. Which product(s) are being under costed due to the use of a single plant-wide overhead allocation rate? O A. Just the Rice Cracker B. Just the Wheat Cracker O C. Just the Corn Cracker O D. Both the Wheat Cracker and the Corn Cracker
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