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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 Machining Designing costs Setup
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 + 2 of 3 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machine hours Number of design hours Number of batches Product A Product B Product C 33,000 43,000 10,300 3,500 1,950 3,300 50 170 280 Required: Using activity rates, determine the amount of overhead assigned to each product. Answer is complete but not entirely correct. Total Overhead Assigned $ 179,025 Product A
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