Question: Cable Company uses three activity pools. Each pool has a cost driver. Information for Cable Company follows: Activity Pools Total Cost of Pool Cost Driver
Cable Company uses three activity pools. Each pool has a cost driver. Information for Cable Company follows:
| Activity Pools | Total Cost of Pool | Cost Driver | Estimated Cost Driver |
|---|---|---|---|
| Machining | $ 171,100 | Number of machine hours | 59,000 |
| Designing costs | 45,100 | Number of design hours | 5,500 |
| Setup costs | 66,123 | Number of batches | 465 |
Suppose that Cable Company manufactures three products, A, B, and C. Information about these products follows:
| Product A | Product B | Product C | |
|---|---|---|---|
| Number of machine hours | 20,000 | 30,000 | 9,000 |
| Number of design hours | 2,200 | 1,300 | 2,000 |
| Number of batches | 40 | 170 | 255 |
Required:
Using activity rates, determine the amount of overhead assigned to each product.
Note: Do not round intermediate calculations. Round the final answer to nearest whole number.
Product A: Product B: Product C:
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