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bernie2981 bernie2981
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Posts: 3810
8 years ago
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 1,000 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 $8,088,000 of annual manufacturing overhead. Of this amount, $2,210,000 is associated with the Large Bag line, $3,418,800 is associated with the Medium Bag line, and $2,459,000 is associated with the Small Bag line. Cooper's Bags Company is currently running a total of 40,000 machine hours: 13,000 in the Large Bag line, 15,400 in the Medium Bag line, and 11,600 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
A) $170.00 per machine hour.
B) $222.00 per machine hour.
C) $212.00 per machine hour.
D) $202.20 per machine hour.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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8 years ago
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