Question

Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable CompanyRequired: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit leveSuppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machSuppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of mach

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1.

Activity cost pools Cost driver Total cost of pool (a) Estimated cost driver Activity rate c = (a/b)
Machining Number of machine hours $312,000 80,000 $3.9 Per machine hour
Designing costs Designing costs $73,600 8,000 $9.2 Per design hour
Setup costs Setup costs $71,600 500 $143.2 Per batch

2.

Classification
Machining Batch level
Designing costs Product level
Setup costs Batch level

Overhead assignes to each product:

Total Overhead Assigned
Product A $153,600
Product B $197,620
Product C $105,980

Working notes:

Product A Product B Product C
Activity rate Activity OH allocated = Activity*rate Activity OH allocated = Activity*rate Activity OH allocated = Activity*rate
Machining $3.9 30,000 $117,000 40,000 $156,000 10,000 $39,000
Desiigning Costs $9.2 3,200 $29,440 1,800 $16,560 3,000 $27,600
Setup Costs $143.2 50 $7,160 175 $25,060 275 $39,380
Overhead assigned $153,600 $197,620 $105,980
Add a comment
Know the answer?
Add Answer to:
Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...

    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 Total Cost of Pool Cost Driver $183,300 Number of machine hours 47,725 Number of design hours 71,150 Number of batches Estimated Cost Driver 61,100 5,750 500 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your...

  • Required Information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...

    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 Total Cost of Pool Cost Driver $312,eee Number of machine hours 73,6ee Number of design hours 71,600 Number of batches Estimated Cost Driver Be, evo 8, eae 500 Re 1. red: mpute the activity rate for each activity. 1551fy each activity as facility, product, batch, or unit level. complete this question by...

  • ! Required information Gable Company uses three activity cost pools. Each pool has a cost driver....

    ! 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 Total Cost of Pool Cost Driver $416,700 Number of machine hours 93,100 Number of design hours 73,338 Number of batches Estimated Cost Driver 92,600 9,500 510 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering...

  • Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...

    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 Total Cost of Pool Cost Driver $ 250,680 Number of machine hours 61,600 Number of design hours 66,482 Number of batches Estimated Cost Driver 71,600 7.ee 465 Required: 1. Compute the activity rate for each activity 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering...

  • Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...

    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 Total Cost of Pool Cost Driver $171,100 Number of machine hours 45,100 Number of design hours 66,123 Number of batches Estimated Cost Driver 59,000 5,500 465 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your...

  • Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable...

    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 Total Cost of Pool Cost Driver $171,100 Number of machine hours 45,100 Number of design hours 66,123 Number of batches Estimated Cost Driver 59,000 5,500 465 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in...

  • Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information...

    Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Part 2 of 2 136 points Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $312,000 Number of machine hours 73,600 Number of design hours 71,600 Number of batches Estimated Cost Driver 80,000 8.000 500 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machine hours...

  • Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable...

    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 Total Cost of Pool Cost Driver $312,000 Number of machine hours 73,600 Number of design hours 71,600 Number of batches Estimated Cost Driver 80,000 8,000 500 Required: 1. Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Rate per Machine Hour Activity Machining Design Costs Setup per Design...

  • Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable...

    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 Total Cost of Pool Cost Driver $312,000 Number of machine hours 73,600 Number of design hours 71,600 Number of batches Estimated Cost Driver 80,000 8,000 500 Required: 1. Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Rate per Machine Hour Activity Machining Design Costs Setup per Design...

  • Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable...

    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 Total Cost of Pool Cost Driver $280,460 Number of machine hours 67,500 Number of design hours 70,070 Number of batches Estimated Cost Driver 75,800 7,500 490 Required: 1. Compute the activity rate for each activity. 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT