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Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Total Cost of Cost Driver
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Total Cost of Cost Driver Number of machine Estimated Cost Driver Pools Pool Machining 265,320 hours. 73,700 Designing costs Setup costs 64,525 Number of design hours 7,250 71,450 Number of batches 500 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 27,000 2,900 60 37,000 1,650 180 9,700 2,700 260 Required: Using activity rates, determine the amount of overhead assigned to each product. (Do not round intermediate calculations.) Total Overhead Product A Product B Product C Assigned Activity Cost Total Cost of Pools Pool Cost Driver Number of machine Estimated Cost Driver Machining $ 265,320 73,700 hours Designing costs 64,525 Number of design hours 7,250 Setup costs 71,450 Number of batches 500 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 27,000 2,900 60 37,000 1,650 180. 9,700 2,700 260 Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.) Total Overhead Assigned Product A Product B Product C
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