Lakeside Inc. manufactures four lines of remote control boats and uses activity-

Question

Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to caloulate product cost Estimated Total Cost Estimated Cost Driver 323,000 13,300 machine hours Activity Cost Pools Machining Setup Quality control 77,000 270 batches 05,000 830 inspections Suppose the Speedy bost requires 3,100 machine hours, 102 batches, and 270 inspections. Using the activity rates, detemine the amount of overhead assigned to the Speedy product lne. (Round intermediate calculations to 2 decimal places and your final answers to the nearest dollar amount.) located Overhe Machining Setup Costs Quality Control Total Overhead

Explanation / Answer

Activity rates = Estimated total cost/Estimated cost driver Activity rate Machining 24.29 per machine hour =323000/13300 Setup costs 285.19 per btach =77000/270 Quality control 126.51 per inspection =105000/830 Cost pool Allocated overhead Machining 75299 =3100*24.29 Setup costs 29089 =102*285.19 Quality control 34158 =270*126.51 Total overhead 138546

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