Reference no: EM132864981
Question - ?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 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 $8,945,000 of annual manufacturing overhead. Of this? amount, $2,170,000 is associated with the Large Bag? line, $3,418,000 is associated with the Medium Bag? line, and $3,357,000 is associated with the Small Bag line.? Cooper's Bags Company is currently running a total of 41,000 machine? hours: 12,300 in the Large Bag? line, 14,500 in the Medium Bag? line, and 14,200 in the Small Bag line.? Cooper's Bags Company uses machine hours as the cost driver for manufacturing overhead costs.
Find the plant-wide manufacturing overhead rate?
A. $176.42 per machine hour.
B. $218.17 per machine hour.
C. $52.93 per machine hour.
D. $235.72 per machine hour.