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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 1,600 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 $7,566,000 of annual manufacturing overhead. Of this amount, $2,150,000 is associated with the Large Bag line, $3,420,000 is associated with the Medium Bag line, and $1,996,000 is associated with the Small Bag line. Cooper's Bags Company is currently running a total of 40,000 machine hours: 13,200 in the Large Bag line, 14,500 in the Medium Bag line, and 12,300 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. $162.28 per machine hour. OB. $235.86 per machine hour. O c. $189.15 per machine hour. OD. $162.88 per machine hour. Hang Ten Company manufactures surf boards and uses an activity-based costing system to allocate all manufacturing conversion costs. Each surf board consists of 10 separate parts totaling $145 in direct materials, and requires 5 hours of machine time to produce. The company incurs no direct labor costs. Additional information follows: Activity Materials handling Machining Assembling Packaging Allocation Base Number of parts Machine hours Number of parts Number of finished units Cost Allocation Rate $4.75 per part $2.00 per machine hour $4.50 per part $4.75 per finished unit What is the total manufacturing cost per surf board? O A. $117.25 O B. $20.00 OC. $252.25 OD $257.50 Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information: Intercept Coefficient = 89,500 X Variable 1 Coefficient = 62.50 R-square = 0.9855 What is the company's monthly cost equation? O A. y = $89,500x + $62.98 OB. y = $98.55x + $89,500 O C. y = $89,500x + $98.55 OD. y = $62.50x + $89,500

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