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Gwynnie Pie Company Makes Dessert Pies for National Fast Food

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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 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 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?


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