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 C H A P T E R 4 Activity-Based Costing and Cost Manage Required: Using the activity rates calculated in E4-3, determine the amount of overhead assigned to each product. E4-5 Assigning Costs Using Activity Proportions Refer to the information presented in E4-3. Suppose that Gable Company manufactures three prod- LO 4-5, 4-6 ucts. Information about its three products follows: Product A Product B Product C Number of machine hours Number of designer hours Number of batches 30,000 3,200 40,000 1,800 10,000 3,000 50 175 275 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. 2. Compare these results with those obtained using activity rates in EA-4. E4-6 Calculating Activity Rates, Assigning Costs LO 4-3, 4-4