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 batches	$250,000	2,500 batches
Mixing measured by batches	$112,000	2,500 batches
Packaging measured by units	$75,000	2,500,000 units
Maintenance measured by # of setups	$15,000	260 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 activity cost allocation rate be for material handling?

$4.52 per machine hour

$100 per batch

$0.03 per unit

$44.80 per batch

Beaver Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 30 separate parts totaling $250 in direct materials, and requires 7.0 hours of machine time to produce. Additional information follows:

Activity	Allocation Base	Cost Allocation Rate
Materials handling	Number of parts	$1.00 per part
Machining	Machine hours	$3.20 per machine hour
Assembling	Number of parts	$1.00 per part
Packaging	Number of finished units	$3.00 per finished unit

What is the number of finished coffee tables?

		28
		210
		840
		Cannot be determined from the information given