wok you hive the work you have done so fer is comect, you may mot have completed

Question

wok you hive the work you have done so fer is comect, you may mot have completed everything 0 64 poir Lakeside Inc. manufactures four ines of nemote conirol boats and uses acthvity based costing to calulate product oost Activity Cest Pools machine hours Suppose the Speedy boat sequires 2,900 machine hours 95 btcheand 310 inspections Using the acivity ates, determine the amount of Round intermediate calculations to 2 decimal places and your final answers to the nearest doilar amount oveadsto the Speesdly product line O Answer is complete but not entirely correct 7.566 command option option command

Explanation / Answer

Ans:

Activity Based Costing method is one which is use to allocate indirect cost on the basis of resource used by such product.

First we need to calculate Cost driver rates. whose formula is as follows:

Total Indirect cost of each activity/Estimated cost driver

Then we allocate these cost on the basis of level of resources used by product. formula is as follows:

Cost driver rates*level of activity,

Now, given question can be solved as follows"

Statement Showing Cost Driver Rate calculation

Statement showing Overhead allocation based on level of activity.

So total overhead to be allocated to speedy product line is 135,905.

Activity Total estimated cost Estimated cost driver Cost Driver rate Machining 333,000 12,400 333,000/12,400=26.85 Setup 73,000 340 73,000/340=214.71 Quality Control 102,000 840 102,000/840=121.43

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.