3. Unit, Batch, Product, or Facility Product 1. Costs Included in Pool 2. Total Cost of Pool 4. Cost Driver Design engineering $220,000 Engineering hours nt 04-2,4-4E4-3 Calculating Activity Rates, Classifying Activities Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool Activity Cost Pools Machining Designing costs Setup costs Cost Driver Estimated Cost Driver $312,000 73,600 71,600 Number of machine hours Number of design hours Number of batches 80,000 8,000 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. E4-4 Assigning Costs Using Activity Rates Refer to the information presented in E4-3. Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: LO 4-4 3. Unit, Batch, Product, or Facility Product 1. Costs Included in Pool 2. Total Cost of Pool 4. Cost Driver Design engineering $220,000 Engineering hours nt 4-2,4-4 E4-3 Calculating Activity Rates, Classifying Activities Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining Designing costs Setup costs $312,000 73,600 71,600 Number of machine hours Number of design hours Number of batches 80,000 8,000 500 Required: 1. Compute the activity rate for each activity 2. Classify each activity as facility, product, batch, or unit level. E4-4 Assigning Costs Using Activity Rates Refer to the information presented in E4-3. Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: LO 4-4