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12) Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate...

12)

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 $ 317,000 13,900 machine hours
Setup 61,000 250 batches
Quality control 85,000 880 inspections

Suppose the Speedy boat requires 2,300 machine hours, 94 batches, and 260 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.)

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Answer #1
STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL
Activity Total Expected Activity
ACTIVITY COST POOL Measures Overheads Activity Rate
Machining MH 317,000 13,900 22.81 per MH
Setup Batches 61,000 250 244.00 Per batch
Quality control Inspections 85,000 880 96.59 Per Inspection
Activity cost for Speddy Product line:
Machining (2300*22.81) 52463
Setup (94*244) 22936
Quality control (260*96.59) 25113.4
Total activity cost 100512.4
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