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 $ 183,300 Number of machine hours 61,100 Designing costs 47,725 Number of design hours 5,750 Setup costs 71,150 Number of batches 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 21,000 31,000 9,100 Number of design hours 2,300 1,350 2,100 Number of batches 60 180 260 How would you find the total overhead?
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 $ 183,300 Number of machine hours 61,100 Designing costs 47,725 Number of design hours 5,750 Setup costs 71,150 Number of batches 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 21,000 31,000 9,100 Number of design hours 2,300 1,350 2,100 Number of batches 60 180 260 How would you find the total overhead?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ | 183,300 | Number of machine hours | 61,100 | |
| Designing costs | 47,725 | Number of design hours | 5,750 | ||
| Setup costs | 71,150 | Number of batches | 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 | 21,000 | 31,000 | 9,100 |
| Number of design hours | 2,300 | 1,350 | 2,100 |
| Number of batches | 60 | 180 | 260 |
How would you find the total overhead?
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