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 E4-4 (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: Product A Product B Product C Number of machine hours 38,000 48,000 10,800 Number of design hours 4,000 2,200 3,800 Number of batches 40 170 295 Required:Using activity rates, determine the amount of overhead assigned to each product.
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 E4-4 (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: Product A Product B Product C Number of machine hours 38,000 48,000 10,800 Number of design hours 4,000 2,200 3,800 Number of batches 40 170 295 Required:Using activity rates, determine the amount of overhead assigned to each product.
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![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 E4-4 (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:
Product A Product B Product C
Number of machine hours 38,000 48,000 10,800
Number of design hours 4,000 2,200 3,800
Number of batches 40 170 295
Required:Using activity rates, determine the amount of overhead assigned to each
product.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87270903-d23e-45b8-ac09-493d7e90715c%2F592b938e-5141-419e-b3e2-1dde9506e529%2Fw6c0dw_processed.png&w=3840&q=75)
Transcribed Image Text: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 E4-4 (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:
Product A Product B Product C
Number of machine hours 38,000 48,000 10,800
Number of design hours 4,000 2,200 3,800
Number of batches 40 170 295
Required:Using activity rates, determine the amount of overhead assigned to each
product.
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