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Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company
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Answer #1
(A) (B) c=a/b
Total estimated overhead
Activity cost pool cost cost driver rate
Machining 250,600 71,600 3.5 per machine hour
Designing costs 61,600 7,000 8.8 per design hour
Setup costs 66,402 465 142.8 per batch
378,602
                  Product A                   Product B                   Product C
OH rate activity overhead OH rate activity overhead OH rate activity overhead
Activity cost pool Assigned Assigned Assigned
Machining 3.5 26,000 91000 3.5 36,000 126000 3.5 9,600 33600
Designing costs 8.8 2,800 24640 8.8 1,600 14080 8.8 2,600 22880
Setup costs 142.8 40 5712 142.8 170 24276 142.8 255 36414
overhead assigned 121352 164356 92894
Total overhead
1) Assigned
Product A 121352
Product B 164356
Product C 92894
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