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Olive Company makes dessert pies for national convenient food chains. Olive Company is considering using ABC costing and has the following activity cost pools and

Olive Company makes dessert pies for national convenient food chains. Olive 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

$251,000

2,000 batches

Mixing measured by batches

$110,000

3,520 batches

Packaging measured by units

$84,000

2,100,000 units

Maintenance measured by # of setups

$15,000

260 setups

Olive Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours.

Based on their estimates for ABC costing, compute the allocated cost for all overhead costs for Job 607 using the following information about the job.

# of units in the job = 4,900

# of units in each batch = 980

# of setups required to complete the job = 1

# of machine hours = 220

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