I have been doing the setup costs as 66000 ÷ 370 × 57 and get 10168... but it sa

Question

I have been doing the setup costs as 66000 ÷ 370 × 57 and get 10168... but it says that is wrong? Setup Costs is all I lack.

value 020 points Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost Estimated Total Cost $320,000 13500 machine hours Activity Cost Pools Machining Setup Quality control Estimated Cost Driver 66,000 99 000870 inspections 370 batches Suppose the Luxury boat requires 5,650 machine hours 145 inspections, and 57 batches Using activity proportions, determine your intermediate calculations to 2 decimal places, Round your final answers to the nearest whole number.) Cost Pool Allocated Overhead Machining Setup Costs Quality Control S Total Ovarhead $ 133,905 16.500 150 405

Explanation / Answer

Setup costs:

Cost per batch = $66,000 / 370 = $178.37

Allocated overhead = 57 batches × $178.37 = $10,167

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