Use the information below to answer the followingquestion(s):

Green Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Green Bags Company sells the bags in cases of1,000 bags. The bags come in threesizes: Large,Medium, and Small.Currently, Green Bags Company uses a single plantwide overhead rate to allocate its$7,141,100 of annual manufacturing overhead. Of thisamount, $1,875,000 is associated with the Large Bagline, $2,992,500 is associated with the Medium Bagline, and$2,273,600 is associated with the Small Bag line. Green Bags Company is currently running a total of37,000 machinehours; 12,500 in the Large Bagline, 13,300 in the Medium Bagline, and11,200 in the Small Bag line. Green Bags Company uses machine hours as the cost driver for manufacturing overhead costs.

Which of the following statements is true with respect to the product lines at Green Bags Company and being overcosted or undercosted by using the plantwide manufacturing overhead rate when compared with the associatedcosts?

A,Large Bags has beenovercosted; Medium and Small have been undercosted.

B.Large, Medium, and Small Bags have all been undercosted.

C.Large, Medium, and Small Bags have all been overcosted.

D.Large and Medium Bags have beenovercosted; and Small have been undercosted.