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OP Pie Company makes dessert pies for national fast food chains Activities Material handling measured by Estimated Overhead Costs $257,000 batches Mixing measured by batches
OP Pie Company makes dessert pies for national fast food chains Activities Material handling measured by Estimated Overhead Costs $257,000 batches Mixing measured by batches $115,000 Packaging measured by units $85,000 Maintenance measured by # of $15,000 setups OP Pie Company is considering using ABC costing and has the following activity cost pools and information available Estimated Activity 2.000 batches 3,680 batches 4,250,000 units 260 setups OP 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 5,400 # of units in each batch 1,080 # of setups required to complete the job=1 # of machine hours 220 How much would the overhead be overcosted or undercosted #OP Pie Company continues to use the plantwide overhead rate as opposed to using ABC Costing? OA. $57.69 undercosted OB. $964 44 undercosted OC. $73.96 overcosted OD. $1,038.40 overcoated
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