Question
Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of
Required information 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 $ 312,000 Number of machine hours 80,000 Designing costs Setup costs 73,600 71,600 Number of design hours 8,000 Number of batches 500 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machine hours Product A Product B Product C Number of design hours es Number of batches 30,000 40,000 10,000 3,200 1,800 50 175 3,000 275 Required: Using activity rates, determine the amount of overhead assigned to each product. Total Overhead Product A Product B Product C Assigned
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