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Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Machining
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Machining $ 171,100 Cost Driver Number of machine hours Estimated Cost Driver 59,000 Designing costs Setup costs 45,100 66,123 Number of design hours Number of batches 5,500 465 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 Required: Product A 20,000 Product B Product C 30,000 9,000 2,200 40 1,300 170 2,000 255 1. Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. Product A Product B Total Overhead Assigned Product C
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There are 3 Steps involved in it
Step: 1
To determine the amount of overhead assigned to each product using activity proportions we need to follow these steps Step 1 Calculate the proportion ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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