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s Question Help Gwynnie Pie Company makes dessert pies for national fast food chains. Gwynnie Pie Company is considering usin

Packaging measured by units Maintenance measured by # of setups $76,000 $15,000 1,900,000 units 260 setups Gwynnie Pie Compan

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Answer #1
Solution:
Calculation of the Cost Driver Rate
Cost Driver Rate = Activity Cost / Cost Driver
Activity Cost / Cost Driver =
Activity Cost Driver   Activity Cost   "/"   Cost Driver " = " To Cost Driver Rate
Material Handling Per Batches   $                      259,000 "/"                            2,800 " = " To   $                    92.50
Mixing Per Batches   $                      116,000 "/"                            2,320 " = " To   $                    50.00
Packing No. of Units   $                         76,000 "/"                       190,000 " = " To   $                      0.40
Maintenance Cost No. of Set-Ups   $                         15,000 "/"                               260 " = " To   $                    57.69
Answer = Option D = $ 50.00 Per Batch
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