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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
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