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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 $ 362,460 Number of machine hours 86,300 Designing costs 83,125 Number of design hours 8,750 Setup costs 71,750 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 33,000 43,000 10,300 Number of design hours 3,500 1,950 3,300 Number of batches 50 170 280 Required: Using activity rates, determine the amount of overhead assigned to each product.

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Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $362,460 Number of machine hours 83,125 Number of design hours 71,750 Number of batches Estimated Cost Driver 86,300 8,750 500 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 Number of design hours Number of batches 3,500 50 1,950 170 3,300 280 Required: Using activity rates, determine the amount of overhead assigned to each product. Total Overhead Assigned Product A Product B Product C

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