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Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company
Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Part 2 of 2 Nu
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Answer

Cost

A B C
Machining $              117,000 $       156,000 $                      39,000
Designing costs $                29,440 $         16,560 $                      27,600
Setup costs $                  7,160 $         25,060 $                      39,380
Total cost $              153,600 $       197,620 $                    105,980
Working Note

Cost

A B C
Machining 312000 / 80000 * 30000 = $117,000 $312,000 / 80,000 * 40,000 = $156,000 $312,000 / 80,000 * 10,000 = $39,000
Designing costs $73,600 / 8,000 * 3,200 = $29,440 $73,600 / 8,000 * 3,200 = $16,560 $73,600 / 8,000 * 3,200        = $27,600
Setup costs $71,600 / 500 * 50 = $7,160 $71,600 / 500 * 50 = $25,060 $71,600 / 500 * 275 = $39,380
Total cost $                                                 153,600 $                                                 197,620 $                                              105,980
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