Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

OP The Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the folowing activity cost

OP The Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the folowing activity cost posts and information available Activities Material handling measured by Estimated Overhead Costs Estimated Activity $254,000 2,540 batches batches Mixing measured by batches $110,000 3,520 batches Packaging measured by units Maintenance measured by # of $70,000 $15,000 1,950,000 units 260 setups 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 5,300 #of units in each batch 1,060 of setups required to complete the job-1 # of machine hours 2201 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? OA $925.94 undercosted OB. $1,005.40 overcosted OC. $79.46 overcosted OD. $57.69 undercosted

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Design And Maintenance Of Accounting Manuals

Authors: Harry L. Brown

3rd Edition

0471253685, 978-0471253686

More Books

Students explore these related Accounting questions