Please do not give solution in image format thanku 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 availableKActivitiesMaterial handing measured bybatchesEstimated Overhead Costs$250,000Mixing measured by batchesPackaging measured by unitsMaintenance measured by # ofsetups$114,000$75,000$15,000OA $948.19 undercostedOB. $57.69 undercostedOC. $50.61 overcostedOD. 1998.80 overcostedEstimated Activity2,500 batches2.400 batches2,500,000 units260 setupsOP Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hoursThe 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-220How 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?

Predetermined overhead rate and ABC costing system are methods used for allocating the overhead to…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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