Based on the above informatiom what would the activity cost

Based on the above informatiom what would the activity cost allocation rate be for mixing

Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering costing and has the following activity cost pools and information available Activities Material handling measured by $255,000 batches using ABC Estimated Overhead Costs Estimated Activty 2,040 batches Mixing measured by batches $112,000 Packaging measured by units $35,000 Mantenance measured by # of S 15,000 setups 2,500 batches 4,250,000 units 260 setups Gwynnie Ple 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 mixing? O A. $0.02 per unit O B. $4 67 per machine hour C. $125 00 per batch O D. $44 80 per batch Click to select your answer th Process

Solution

Answer is D. $ 44.80 per batch Explanation: Estimated Mixing overheads 112000 Divide: Number of batches 2500 Activity cost per batch 44.8