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 allocated cost for packaging be for Job 607 if Job 607 contains 5,000 units?
A)$150
B)$75,000
C)$11,250
D)$15

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 allocated cost for packaging be for Job 607 if Job 607 contains 5,000 units?
A)$150 
B)$75,000 
C)$11,250 
D)$15

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 allocated cost for packaging be for Job 607 if Job 607 contains 5,000 units?
A)$150 
B)$75,000 
C)$11,250 
D)$15

Gwynnie Pie Company Makes Dessert Pies for National Fast Food