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 $454,960 Number of machine hours 100,000 Number of design hours 72,720 Number of batches Estimated Cost Driver 96,800 10,000 505 E4-4 (Algo) Assigning Costs Using Activity Rates (LO 4-4) Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machine hours Number of design hours Number of batches Product Product B Product C 38,000 48,000 10,800 4,000 2,200 3,800 40 170 295 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
