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: Activities Material handling measured by batches Mixing measured by batches Packaging measured by units Maintenance measured by # of setups Estimated Overhead Costs $254,000 $118,000 $72,000 $15,000 Estimated Activity 2,540 batches 4,000 batches 1,800,000 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 = 5,500 # of units in each batch = 1,100 # 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 plantwide overhead rate as opposed to using ABC Costing?

OP Pie Company makes dessert ples for national fast food chains. OP Pie Company is considering using ABC costing and has the folbowing activity cost pools and information available: OP Ple Compariy currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours: The folowing information was gathered regarding Job 607 : in of units in the job =5,500 \# of units in each batch =1,100 \# 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 plantwide overhead rate as opposed to using ABC Costing? A. $925.19 undercosted B. $84.61 overcosted C. $1,009.80 overcosted D. $57.69 undercosted