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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
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 | $ | 380,120 | Number of machine hours | 88,400 | |
Designing costs | 86,400 | Number of design hours | 9,000 | ||
Setup costs | 74,672 | Number of batches | 525 | ||
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 | 34,000 | 44,000 | 10,400 |
Number of design hours | 3,600 | 2,000 | 3,400 |
Number of batches | 60 | 180 | 285 |
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.)
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