Question

Required information Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows: Activity Cost Pools Machining Designing costs Setup costs Total Cost of Pool Cost Driver $328,400 Number of machine hours 76,725 Number of design hours 74,516 Number of batches Estimated Cost Driver 82,100 8,250 520 Required: m. Compute the activity rate for each activity, 2. Classify each activity as facility, product, batch, or unit level. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the activity rate for each activity. (Round your answers to 2 decimal places.) Activity Activity Rate

Answer 1

Answer 1 Pools cost Driver Determine the Activity rate for each activity Pool Estimated activity Rate Activity Cost Total cost of cost Driver (b) ( (a) (c=alb) Machining $328,400 Number of machine hours 82,100 $4 per Machine Hour Designing $76,725 Numberof design 8,250 $9-30 per Cost hours setup design Hour Costs $74,516 Number of batches Batch 520 $1433 per

2) classify each activity as facility, product, batch, or unit level Machining Batch level Designing costs Product level setup costs Batch level