Question: Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Total Cost of Pool Cost Driver Estimated Cost Driver Machining $ 454,960 Number of machine hours 96,800 Designing costs 100,000 Number of design hours 10,000 Setup costs 72,720 Number of batches 505 E4-3 (Algo) Calculating Activity Rates, Classifying Activities [LO 4-2, 4-4]
Required: Compute the activity rate for each activity.
Classify each activity as facility, product, batch, or unit level.
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