Question
Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Cost Pools Estimated Total Cost Estimated Cost
Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost.
| Activity Cost Pools | Estimated Total Cost | Estimated Cost Driver | ||
| Machining | $ | 435,000 | 15,000 | machine hours |
| Setup | 78,195 | 390 | batches | |
| Quality control | 120,960 | 840 | inspections | |
Suppose the Luxury boat requires 6,000 machine hours, 210 inspections, and 78 batches. Using activity proportions, determine the amount of overhead assigned to the Luxury product line. (Round your final answers to the nearest whole number.)
Machining = ? Allocated Overhead
Setup Cost = ? Allocated Overhead
Quality Control = ? Allocated Overhead
Total Overhead = 219,879
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
17th Edition
1260247783, 978-1260247787
