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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
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: Estimated Overhead Costs Estimated Activity Material handling measured by$257,000 2,000 batches batches Mixing measured by batches Packaging measured by unvits $86,000 Maintenance measured by # of $15,000 4,000 batches 2,150,000 units 260 setups $118,000 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? OA. SO 04 per unit O B. $4 76 per machine hour O C. $128 50 per batch O D. $29.50 per batch Click to select your answer Type here to search Esc F1 F2 F3 FS F7 2 4 Tab R
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