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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 | $ | 222,420 | Number of machine hours | 67,400 | |
Designing costs | 55,900 | Number of design hours | 6,500 | ||
Setup costs | 72,726 | Number of batches | 505 | ||
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 | 24,000 | 34,000 | 9,400 |
Number of design hours | 2,600 | 1,500 | 2,400 |
Number of batches | 60 | 180 | 265 |
Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Round Activity Proportion to 2 decimal places (e.g., 32.16%). Round your other intermediate calculations and final answer to the nearest whole dollar amount.)
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