Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost.
| Activity Cost Pool |
Estimated
Total Cost |
Estimated Cost Driver |
| Machining |
$ |
325,000 |
13,500 |
machine hours |
| Setup |
|
65,000 |
290 |
batches |
| Quality control |
|
98,000 |
760 |
inspections |
|
Suppose the Speedy boat requires 2,500 machine hours, 97 batches, and 380 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 |
|
| Qualilty Control |
|
| Total Overhead |
|