Based on the below information, what would the activity cost allocation rate be for mining? OP Pie

Based on the below information, what would the activity cost allocation rate be for mining?
 

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OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the following activity cost pools and information available: Activities Estimated Overhead Costs Material handling measured by $258,000 Estimated Activity 2,150 batches batches Mixing measured by batches $112,000 2,500 batches Packaging measured by units $76,000 Maintenance measured by # of setups $15,000 1,900,000 units 260 setups OP Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours. OP Pie Company makes dessert pies for national fast food chains. OP Pie Company is considering using ABC costing and has the following activity cost pools and information available: Activities Estimated Overhead Costs Material handling measured by $258,000 Estimated Activity 2,150 batches batches Mixing measured by batches $112,000 2,500 batches Packaging measured by units $76,000 Maintenance measured by # of setups $15,000 1,900,000 units 260 setups OP Pie Company currently uses a plantwide overhead rate based on total estimated machine hours of 100,000 hours.

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To determine the activity cost allocation rate for mining we need to calculate the cost allocation r... View the full answer