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 $280,460 Number of machine hours 75,800
Designing costs 67,500 Number of design hours 7,500
Setup costs 70,070 Number of batches 490
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 28,000 38,000 9,800
Number of design hours 3,000 1,700 2,800
Number of batches 50 175 265
1.Using activity proportions, determine the amount of overhead assigned to each product.(Round Activity Proportion to 2 decimal places (e.g., 32.16%). Round your other intermediate calculations and final answer to the nearest whole dollar amount.)
Product A
Product B
Product C
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
