Question: Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost Estimated Cost Driver Activity



Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost Estimated Cost Driver Activity Cost Pools of Pool Cost Driver Machining 69,500 $236,300 Number of machine hours 58,725 Number of design hours 71,350 Number of batches Designing costs Setup costs 6,750 500 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Number of machine hours 35,000 9,500 25,000 2,700 Number of design hours Number of batches 1,550 2,500 50 180 270 Required: Using activity rates, determine the amount of overhead assigned to each product. (Do not round intermediate calculations.) Total Overhead Assigned Product A Product B Product C Required: 1. Using activity proportions, determine the amount of overhead assigned to each product. (Do not round your intermediate calculations. Round your final answers to nearest whole number.) Total Overhead Assigned Product A Product B Product C
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Answer 1 Calculation of activity rates Activity rate Total costTotal estimated ... View full answer
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