? Bookmarks Gable Company uses three activity cost pools. Each pool has a cost d

Question

? Bookmarks Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost Estimated Cost Driver 84,200 8,500 Activity Cost Pools of Pool Cost Driver $345,220 Number of machine hours Designing costs Setup costs 79,900 70,983 Number of design hours Number of batches 495 Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product AProduct 8 Product C 10,200 3,200 Number of machine hours Number of design hours Number of batches 2,000 42 3,400 1 42,000 1,900 170 40 Required: Using activity rates, determine the amount of overhead assigned to each product. (Round activity rates to 2 decimal places. final answer to the nearest whole dollar amount.) Total Ov ProductA Product 8 Product C Hints References eBook & Resources 80 2 3 4

Explanation / Answer

1st question:

working:

cost allocated = total cost of activity * activity of product / total activity

2nd question:

working:

cost allocated = total cost of activity * activity of product / total activity

92,894

total overhead assigned product A 168,896 product B 214,438 product C 112,769

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