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E4-3, E4-4 and E4-5 Skip to question Gable Company uses three activity pools. Each...

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Accounting

E4-3, E4-4 and E4-5

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Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows:

Activity Pools Total Cost of Pool Cost Driver Estimated Cost Driver
Machining $ 398,200 Number of machine hours 90,500
Designing costs 89,725 Number of design hours 9,250
Setup costs 70,413 Number of batches 490

E4-5 (Algo) Assigning Costs Using Activity Proportions [LO 4-5, 4-6]

Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows:

Product A Product B Product C
Number of machine hours 35,000 45,000 10,500
Number of design hours 3,700 2,050 3,500
Number of batches 40 170 280

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.

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