FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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of 3
bok
nt
ant
ences
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
$ 222,420
55,900
72,726
Product A
Product B
Product C
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
24,000
Product C
9,400
2,600
60
2,400
265
Total Overhead
Assigned
Product B
34,000
1,500
180
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.
Estimated Cost
Driver
67,400
6,500
< Prov
505
San
of 12 #
Next >
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Transcribed Image Text:of 3 bok nt ant ences 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 $ 222,420 55,900 72,726 Product A Product B Product C 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 24,000 Product C 9,400 2,600 60 2,400 265 Total Overhead Assigned Product B 34,000 1,500 180 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. Estimated Cost Driver 67,400 6,500 < Prov 505 San of 12 # Next >
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