Question - Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:
|
Activity Cost Pools
|
Total Cost of Pool
|
Cost Driver
|
Estimated Cost Driver
|
|
Machining
|
$241,000
|
Number of machine hours
|
84,900
|
|
Designing costs
|
64,000
|
Number of design hours
|
8,700
|
|
Setup costs
|
68,000
|
Number of batches
|
350
|
Required -
1. Compute the activity rate for each activity.
2. Classify each activity as facility, product, batch, or unit level.