Gable co uses 3 activity pools: Activity Pools                               total cost of pools                       cost driver                     estimated cost driver          Machining                                      208,960                            number of machine hours      65,300 designing costs                            53,125                                 number of design hours         6,250 setup costs                                    68,400                                number of batches                 480  Gable co manufactures 3 products, manufactured are ,A,B,C:                                                   Product A                         Product B                           Product C Number of Machine hours       23,000                                 33,000                               9,300 Number of design hours           2,500                                   1,450                                  2,300 Number of batches                   40                                          170                                      270  Using Activity rates, determine Total overhead assigned for Product A,B,C ? 208,960/65,300=3.2      53,125/6,250=8.5        68,400/480=142.5 is this correct so far?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Gable co uses 3 activity pools:

Activity Pools                               total cost of pools                       cost driver                     estimated cost driver         

Machining                                      208,960                            number of machine hours      65,300

designing costs                            53,125                                 number of design hours         6,250

setup costs                                    68,400                                number of batches                 480

 Gable co manufactures 3 products, manufactured are ,A,B,C:

                                                  Product A                         Product B                           Product C

Number of Machine hours       23,000                                 33,000                               9,300

Number of design hours           2,500                                   1,450                                  2,300

Number of batches                   40                                          170                                      270 

Using Activity rates, determine Total overhead assigned for Product A,B,C ?

208,960/65,300=3.2      53,125/6,250=8.5        68,400/480=142.5

is this correct so far?

 

 

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