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

Question

Lakeside Inc. manufactures four ines of remote control boats and uses activity-based costing to calculate p Activity Cost Pools Machining Setup Quality control Estimated Total CostE $330.000 12,100 machinehours Estimated Cost Driver 290 batches 3,000 780 ispections Suppose the Luxury boat requires 4,850 machine hours, 275 inspections, and 59 batches. Using actvity proportions, determine the amount of overhead assigned to the Luxury product ine. (Round your intermediate calculations to the nearest whole percentage nd your final answer to the nearest whole number.) Cost Pool Machining Setup Costs Quality Control Total Overhead Allocated Overhead

Explanation / Answer

Particulars Amount a Activity Driver No of Activity b Cost per activity c= a/b Machining                       330,000.00 Machine hours                12,100.00                        27.27 Setup                          71,000.00 Batches                      290.00                      244.83 Quality Control                       103,000.00 Inspections                      780.00                      132.05 Total Overhead                       504,000.00 Cost Pool Allocated overhead Machining = 4850 * 27.27                       132,259.50 Setup costs = 59*244.83                          14,444.97 Qualit Control = 275 * 132.05                          36,313.75 Total Overhead                       183,018.22

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