M4-9 Assigning Costs Using Activity Rates LO 4-4)] Lakeside Inc, manufactures fo

Question

M4-9 Assigning Costs Using Activity Rates LO 4-4)] Lakeside Inc, manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Cost Pools Machining Setup Quality control Estimated Total Cost 334,000 14,000 machine hours Estimated Cost Driver 430 batches 900 inspections 68,000 Suppose the Speedy boat requires 2,700 machine hours, 108 batches, and 350 inspections. Using the activity rates, determine the amount of overhead assigned to the Speedy product line. (Round intermediate calculations to 2 decimal places and your final answers to the nearest dollar amount.) Cost Pool Allocated Overhead Machining Setup Costs Quality Control Total Overhead

Explanation / Answer

Calculate allocated overhead :

Cost pool Allocated overhead Machining (334000/14000) 23.86*2700 = 64422 Setup (68000/430) 158.14*108 = 17079 Quality control (97000/900) 107.78*350 = 37723 Total 119224

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