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Compute the activity rate for each activity

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Reference no: EM131750918

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.

Reference no: EM131750918

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