Question: 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

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 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Dred Number of machine hours Number of design hours Number of batches Product A Product B Product C 33,000 43,000 10,300 3,500 1,950 3,300 50 170 280 60 Required: Using activity rates, determine the amount of overhead assigned to each product. Total Overhead Assigned Product A Product B Product C 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 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Dred Number of machine hours Number of design hours Number of batches Product A Product B Product C 33,000 43,000 10,300 3,500 1,950 3,300 50 170 280 60 Required: Using activity rates, determine the amount of overhead assigned to each product. Total Overhead Assigned Product A Product B Product C
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