Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost pools and information available: Gwynnie 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 activity cost allocation rate be for material handling?
A)$4.52 per machine hour
B)$100 per batch
C)$0.03 per unit
D)$44.80 per batch

Question

Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost pools and information available:  Gwynnie 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 activity cost allocation rate be for material handling?
A)$4.52 per machine hour 
B)$100 per batch 
C)$0.03 per unit 
D)$44.80 per batch

Quizplus · Accepted Answer

The Answer of Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering using ABC costing and has the following activity cost pools and information available:  Gwynnie 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 activity cost allocation rate be for material handling?
A)$4.52 per machine hour 
B)$100 per batch 
C)$0.03 per unit 
D)$44.80 per batch

Gwynnie Pie Company Makes Dessert Pies for National Fast Food