Question: Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Total Cost of Pool
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 362,460 Number of machine hours 86,300 Designing costs 83,125 Number of design hours 8,750 Setup costs 71,750 Number of batches 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level.


Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $362, 460 Number of machine hours 83,125 Number of design hours 71,750 Number of batches Estimated Cost Driver 86,300 8,750 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Rate Activity Machining Design Costs Setup per Machine Hour per Design Hour per Batch Required 1 Required 2 > Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $362,460 Number of machine hours 83,125 Number of design hours 71,750 Number of batches Estimated Cost Driver 86,300 8,750 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Classify each activity as facility, product, batch, or unit level. Machining Design Setup
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
