Question
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 454,960 Number of machine hours 96,800 Designing costs 100,000 Number of design hours 10,000 Setup costs 72,720 Number of batches 505 E4-4 (Algo) Assigning Costs Using Activity Rates [LO 4-4] 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 38,000 48,000 10,800
Number of design hours 4,000 2,200 3,800
Number of batches 40 170 295
Required:Using activity rates, determine the amount of overhead assigned to each product.
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