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in cases of 1,600 bags. The bags come in three sizes: Large, Medium, and Coopers Bags Company manufactures cloth grocery bags to be sold to grocery stores and other retailers. Coopers Bags Company sells the bags i Small. Currently, Coopers Bags Company uses a single plant- wide overhead rate to allocate its $8,612,000 of annual manufacturing overhead. Of this amount $2250,000 s associated with the Medium Bag line, and $2,945,000 is associated with the Small Bag line Coopers Bags Company is currently running a total of 45 and 16,800 in the Small Bag line. Coopers Bags Company uses machine hours as the cost driver for manufacturing overhead costs The plant-wide manufacturing overhead rate would be closest to (Round your final answer to the nearest cent ) associated with the Large Bag line, $3,417,000 is ,000 machine hours. 13,200 in the Large Bag line, 15,000 in the Medium Bag line, 0 A. O B. S50 00 per machine hour $191.38 per machine hour C. $170 45 per machine hour. O D. $227 80 per machine hour.

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Answer #1

Calculate single plant wide manufacturing overhead rate :

Manufacturing overhead rate = Estimated overhead/estimated machine hour

= 8612000/45000

Manufacturing overhead rate = $191.38 per machine hour

So answer is b) $191.38 per machine hour

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