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E4-4 Assigning Costs Using Activity Rates [LO 4-4] Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company
E4-4 Assigning Costs Using Activity Rates [LO 4-4] Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows Estimated Cost Driver 96,800 10,000 Total Cost of Pool Activity Cost Pools Machining Designing costs Setup costs Cost Driver Number of machine hours Number of design hours Number of batches $454,960 100,000 72,720 505 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows Product A 38,000 4,000 40 Product B 48,000 2,200 170 Product C 10,800 3,800 295 Number of machine hours Number of design hours Number of batches Required Using activity rates, determine the amount of overhead assigned to each product. (Round activity rates to 2 decimal places nearest whole dollar amount.) Total Overhead Assigned Product A Product B Product C
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