Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool Product A Product B Product C $ 171,100 45,100 66,123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Total Overhead Assigned Cost Driver Number of machine hours Number of design hours Number of batches. Product A Product B Product C 20,000 30,000 2,200 1,300 40 170 Estimated Cost Driver 59,000 5,500 465 9,000 2,000 255 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number.
Required information Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Activity Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches Total Cost of Pool Product A Product B Product C $ 171,100 45,100 66,123 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Total Overhead Assigned Cost Driver Number of machine hours Number of design hours Number of batches. Product A Product B Product C 20,000 30,000 2,200 1,300 40 170 Estimated Cost Driver 59,000 5,500 465 9,000 2,000 255 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 8CE: Electan Company produces two types of printers. The company uses ABC, and all activity drivers are...
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