Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question Help 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
Question Help 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 1,900 bags. The bags come in three sizes: Large, Medium, and Small. Currently, Cooper's Bags Company uses a single plantwide overhead rate to allocate its 57,927,000 of annual manufacturing overhead. Of this amount, $2,270,000 is associated with the Large Bag line, $3,417,000 is associated with the Medium Bag line, and $2,240,000 is associated with the Small Bag line. Cooper's Bags Company is currently running a total of 40,000 machine hours: 13,900 in the Large Bag line 16,000 in the Medium Bag line, and 10,100 in the Small Bag line. Cooper's Bags Company uses machine hours as the cost driver for manufacturing overhead costs. The departmental manufacturing overhead rate for the Small Bag line would be closest to (Round your final answer to the nearest cent.) O A. $221.78 per machine hour. OB. $198.18 per machine hour. OC. $163.31 per machine hour. OD. $213.56 per machine hour
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started