Question
OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the following activity
OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the following activity cost pools and information available: Estimated Activity Activities Estimated Overhead Costs Material handling measured by $258,000 2,150 batches batches Mixing measured by batches $113,000 Packaging measured by units $75,000 Maintenance measured by # of setups $15,000 2,260 batches 2,500,000 units 260 setups OP 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 allocated cost for packaging be for Job 607 if Job 607 contains 5,000 units? OA. $75,000 OB. $6,400 OC. $3,390 OD. $150
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