Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Cost Driver $398,200 Number of machine hours 89,725 Number of design hours 70,413 Number of batches Total Overhead Assigned Product A Product B Product C 35,000 45,000 2,050 3,700 40 170 Estimated Cost Driver 90,500 9,250 490 10,500 3,500 280 Required: Using activity rates, determine the amount of overhead assigned to each product. (Do not round intermediate calculation
Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B Product C Cost Driver $398,200 Number of machine hours 89,725 Number of design hours 70,413 Number of batches Total Overhead Assigned Product A Product B Product C 35,000 45,000 2,050 3,700 40 170 Estimated Cost Driver 90,500 9,250 490 10,500 3,500 280 Required: Using activity rates, determine the amount of overhead assigned to each product. (Do not round intermediate calculation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:
Activity Cost Pools
Machining
Designing costs
Setup costs
Number of machine hours
Number of design hours
Number of batches
Total Cost
of Pool
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:
Product A Product B Product C
35,000
45,000
10,500
3,700
2,050
3,500
40
170
280
Product A
Product B
Product C
Cost Driver
$398,200 Number of machine hours
89,725 Number of design hours
70,413 Number of batches
Total Overhead
Assigned
Estimated
Cost Driver
90,500
9,250
490
Required:
Using activity rates, determine the amount of overhead assigned to each product. (Do not round intermediate calculations.)
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