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OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering Activities Estimated Overhead Costs Estimated Activity Material handling measured
OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering Activities Estimated Overhead Costs Estimated Activity Material handling measured by $254,000 2,540 batches batches Mixing measured by batches $110,000 3,520 batches Packaging measured by units $78,000 Maintenance measured by # of $15,000 1,950,000 units 260 setups setups OP Pie Company currently uses a plantwide overhead rate based on total estimated machine hours The following information was gathered regarding Job 607: # of units in the job = 5,300 # of units in each batch = 1,060 # of setups required to complete the job = 1 # of machine hours = 220 How much would the overhead be overcosted or undercosted if OP Pie Company continues to use the OA. $925.94 undercosted OB. $1,005.40 overcosted OC. $79.46 overcosted OD. $57.69 undercosted pies for national fast food chains. OP Pie Company is considering using ABC costing and has the following activity cost po Estimated Overhead Costs $254,000 $110,000 $78,000 $15,000 Estimated Activity 2,540 batches 3,520 batches 1,950,000 units 260 setups a plantwide overhead rate based on total estimated machine hours of 100,000 hours. thered regarding Job 607: the job = 1 be overcosted or undercosted if OP Pie Company continues to use the plantwide overhead rate as opposed to using ABC Cos ns. OP Pie Company is considering using ABC costing and has the following activity cost pools and information available: Estimated Activity 2,540 batches 3,520 batches 1,950,000 units 260 setups sed on total estimated machine hours of 100,000 hours. if OP Pie Company continues to use the plantwide overhead rate as opposed to using ABC Costing
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