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:

Activities	Estimated Overhead Costs	Estimated Activity
Material handling measured by batches	$250,000	2,500 batches
Mixing measured by batches	$112,000	2,500 batches
Packaging measured by units	$75,000	2,500,000 units
Maintenance measured by # of setups	$15,000	260 setups

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?

		$4.52 per machine hour
		$100 per batch
		$0.03 per unit
		$44.80 per batch Beaver Company manufactures coffee tables and uses an activity-based costing system to allocate all manufacturing conversion costs. Each coffee table consists of 30 separate parts totaling $250 in direct materials, and requires 7.0 hours of machine time to produce. Additional information follows: Activity Allocation Base Cost Allocation Rate Materials handling Number of parts $1.00 per part Machining Machine hours $3.20 per machine hour Assembling Number of parts $1.00 per part Packaging Number of finished units $3.00 per finished unit What is the number of finished coffee tables? 28 210 840 Cannot be determined from the information given