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Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Ple 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 Ple Company is considering using ABC costing and has the following activity cost pools and information available: 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 =5,000 # of units in each batch =1,000 \# of setups required to complete the job =1 \# 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? $994.40 overcosted $45.34 undercosted $931.69 undercosted $62.71 overcosted

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