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Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pool Total Cost of Pool
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: |
Activity Cost Pool | Total Cost of Pool | Cost Driver | Estimated Total of Cost Driver | ||
Machining | $ 312,000 | Number of machine hours | 80,000 | ||
Designing costs | 73,600 | Number of design hours | 8,000 | ||
Setup costs | 71,600 | 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 | 30,000 | 40,000 | 10,000 |
Number of design hours | 3,200 | 1,800 | 3,000 |
Number of batches | 50 | 175 | 275 |
Required: |
Determine the amount of overhead assigned to each product. |
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