Question
For practice only not for grade: Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity
For practice only not for grade: 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 $474,720 Number of machine hours 98,900
Designing costs 103,525 Number of design hours 10,250
Setup costs 72,050 Number of batches 500
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:
Product A Product B Product C
Number of machine hours 39,000 49,000 10,900
Number of design hours 4,100 2,250 3,900
Number of batches 50 170 280
Required:
Using activity rates, determine the amount of overhead assigned to each product.(Round activity rates to 2 decimal places. Round your other intermediate calculations and final answer to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started