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Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost

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Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost pools and information available: Activities Estimated Overhead Costs Estimated Activity. Material handling measured by $250,000 2,500 batches batches Mixing measured by batches $112,000 2,500 batches Packaging measured by units $75,000 2,500,000 units Maintenance measured by # of $15,000 260 setups setups Gwynnie Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours. Based on the above information, what would the allocated cost for packaging be for Job 607 if Job 607 contains 5,000 units? O A. $75,000 O B. $150 O C. $15 D. $11,250

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