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3 My Blackboard Content-Blac x File a Phone Insurance ClaimxAsurion ? ezto.mhedu

ID: 2404311 • Letter: 3

Question

3 My Blackboard Content-Blac x File a Phone Insurance ClaimxAsurion ? ezto.mheducation.com/hm.tpx Bookmarks xBootca Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows Total Cost of Pool 494,900 Number of machine hours 107,100 Number of design hours Estimated Cost Activity Cost Pools Machining Designing costs Setup costs Cost Driver 101,000 10,500 4,984 Number of batches Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Number of machine hours Number of design hours Number of batches Product A Product B Product C 11,000 4,200 2.3004,000 40,000 50,000 60 180 Required Using activity rates, determine the amount of overhead assigned to each product. (Round activity rates to 2 decimal places. answer to the nearest whole dollar amount.) Product A Product B Product C Check my work 3 4 5 6

Explanation / Answer

a

b

c

d

E=c/d

f

G=f*e

h

I=h*e

j

K=j*e

Cost Pools

Total Cost

Cost driver

Estimated cost driver

Cost/hour

Product a

Product b

Product c

units

Cost

units

Cost

units

Cost

Machining

$494900

Machine hours

101000

4.90

40000

196000

50000

245000

11000

53900

Designing

$107100

Design hours

10500

10.20

4200

42840

2300

23460

4000

40800

Setup cost

$74984

Number of batches

525

142.83

60

8569.60

180

25708.80

285

40705.60

Total

$676984

$247409.60

294168.80

135405.60

Product

Total Overhead Assigned

Product A

$ 247409.60

Product B

$ 294168.80

Product C

$ 135405.60

TOTAL

$ 676984

a

b

c

d

E=c/d

f

G=f*e

h

I=h*e

j

K=j*e

Cost Pools

Total Cost

Cost driver

Estimated cost driver

Cost/hour

Product a

Product b

Product c

units

Cost

units

Cost

units

Cost

Machining

$494900

Machine hours

101000

4.90

40000

196000

50000

245000

11000

53900

Designing

$107100

Design hours

10500

10.20

4200

42840

2300

23460

4000

40800

Setup cost

$74984

Number of batches

525

142.83

60

8569.60

180

25708.80

285

40705.60

Total

$676984

$247409.60

294168.80

135405.60