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akes dessert pies for national fast food chains. OP Estimated Overhead Costa $250,000 Company is considering using ABC costing and has the following activity cost pool and hand Estimated Activity 2,500 batches Activities Material handing measured by batches Mixing measured by batches Packaging measured by units Maintenance measured by # of 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-5,100 #of units in each batch 1,020 # of sebups 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 planteide overhead rate as opposed to using ABC Costing? OA $948 19 undercosted OB. $57.69 undercosted OC. $50.61 overcosted D. 1908.80 overcosted $114,000 $75,000 $15,000 2,400 batches 2,500,000 units 260 setups

akes dessert pies for national fast food chains. OP Estimated Overhead Costa $250,000 Company is considering using ABC costing and has the following activity cost pool and hand Estimated Activity 2,500 batches Activities Material handing measured by batches Mixing measured by batches Packaging measured by units Maintenance measured by # of 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-5,100 #of units in each batch 1,020 # of sebups 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 planteide overhead rate as opposed to using ABC Costing? OA $948 19 undercosted OB. $57.69 undercosted OC. $50.61 overcosted D. 1908.80 overcosted $114,000 $75,000 $15,000 2,400 batches 2,500,000 units 260 setups

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 K Activities Material handing measured by batches Estimated Overhead Costs $250,000 Mixing measured by batches Packaging measured by units Maintenance measured by # of setups $114,000 $75,000 $15,000 OA $948.19 undercosted OB. $57.69 undercosted OC. $50.61 overcosted OD. 1998.80 overcosted Estimated Activity 2,500 batches 2.400 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 The following information was gathered regarding Job 607 # of units in the job - 5,100 #of units in each batch 1,020 # 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?
Transcribed Image Text: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 K Activities Material handing measured by batches Estimated Overhead Costs $250,000 Mixing measured by batches Packaging measured by units Maintenance measured by # of setups $114,000 $75,000 $15,000 OA $948.19 undercosted OB. $57.69 undercosted OC. $50.61 overcosted OD. 1998.80 overcosted Estimated Activity 2,500 batches 2.400 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 The following information was gathered regarding Job 607 # of units in the job - 5,100 #of units in each batch 1,020 # 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?
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