Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows Total Cost of Pool Estimated Cost Driver 65,300 $ 208,960 53,125 68,400 6,250 480 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 23,000 2,500 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B 33,000 1,450 170 Required: 1.Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. Product C 9,300 2,300 270
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows Total Cost of Pool Estimated Cost Driver 65,300 $ 208,960 53,125 68,400 6,250 480 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A 23,000 2,500 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned Product B 33,000 1,450 170 Required: 1.Using activity proportions, determine the amount of overhead assigned to each product. Note: Do not round your intermediate calculations. Round your final answers to nearest whole number. Product C 9,300 2,300 270
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows:
Total Cost of
Pool
$ 208,960
53,125
68,400
Activity Pools
Machining
Designing costs
Setup costs
Number of machine hours
Number of design hours
Number of batches
Cost Driver
Number of machine hours
Number of design hours
Number of batches
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows.
Product A
23,000
2,500
40
Product A
Product B
Product C
Total Overhead
Assigned
Product B
33,000
1,450
170
Estimated Cost
Driver
Product C
9,300
2,300:
270
65,300
6,250
480
Required:
1.Using activity proportions, determine the amount of overhead assigned to each product
Note: Do not round your intermediate calculations. Round your final answers to nearest whole number.
8
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