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Activities Material handling measured by batches Mixing measured by batches Packaging measured by units Maintenance measured by # of setups Estimated Overhead Costs $259,000 $113,000
Activities Material handling measured by batches Mixing measured by batches Packaging measured by units Maintenance measured by # of setups Estimated Overhead Costs $259,000 $113,000 $84,000 $15,000 Estimated Activity 2,800 batches 2,260 batches 2,100,000 units 260 setups O A. $1,036.20 overcosted B. $50.01 overcosted O c. $57.69 undercosted Click to select your answer. Gwynnie Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours. The following information was gathered regarding Job 607: # of units in the job = 5,400 # of units in each batch = 1,080 # of setups required to complete the job = 1 # of machine hours = 220 O A. $1,036.20 overcosted OB. $50.01 overcosted O c. $57.69 undercosted # of machine hours = 220 How much would the overhead be overcosted or undercosted if Gwynnie Pie Company continues to use the plantwide overhead rate as opposed to using ABC Costing? OB. $50.01 overcosted
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