My Blackboard Content BlaxFile a Phone Insurance Claim x As

) My Blackboard Content -BlaxFile a Phone Insurance Claim x Asurion Bootcan O ezto.mheducation.com/hm.tpx Bookmarks Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows Estimated Cost Total Cost of Pool $260,000 57,000 77,000 Cost Driver Activity Cost Pools Machining Designing costs Setup costs Number of machine hours Number of design hours Number of batches 75,700 7,000 430 Required 1. Compute the activity rate for each activity, (Round your answers to 2 decimal places.) Activity Activity Rate per Machine Hour per Design Hour per Batchh Design Costs 2. Classity each activity as facility product, batch, or unit level. Unit Level Design Customer or Product Level 888 a 2 3 4 5 6

Solution

Calculation of Activity rate

Activity Rate= Cost Pool/ Estimated cost driver

Activity

(a)

Cost Pool(in $)

(b)

Cost Driver

( c)

Estimated cost driver

(d)

Activity rate

(e)= (b)/ (d)

Machining

260000

Number of machine hours

75700 hours

3.43 per machine hour

Designing

57000

Number of design hours

7000 hours

8.14 per designing hour

Setup

77000

Number of batches

430 batches

179.07 per batch

Activity (a)	Cost Pool(in $) (b)	Cost Driver ( c)	Estimated cost driver (d)	Activity rate (e)= (b)/ (d)
Machining	260000	Number of machine hours	75700 hours	3.43 per machine hour
Designing	57000	Number of design hours	7000 hours	8.14 per designing hour
Setup	77000	Number of batches	430 batches	179.07 per batch