Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 (Click the icon to view the data.) 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? A. $994.40 overcosted B. S6271 overcosted O C. $45.34 undercosted D. S93 1.69 undercosted Data Table Activities ed by $250,000 Material handling measur batches Mixing measured by batches Packaging measured by units Maintenance measured by # of setups 2,500 batches $112,000 $75,000 $15,000 2,500 batches 2,500,000 units 260 setups PrintDone
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started