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 $ 323,000 13,100 machine hours Setup 74,000 300 batches Quality control 103,000 860 inspections Suppose the Speedy boat requires 3,400 machine hours, 108 batches, and 280 inspections. Using the activity rates, determine the amount of overhead assigned to the Speedy product line. Im not sure how to work this problem?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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 | $ | 323,000 | 13,100 | machine hours |
| Setup | 74,000 | 300 | batches | |
| Quality control | 103,000 | 860 | inspections | |
Suppose the Speedy boat requires 3,400 machine hours, 108 batches, and 280 inspections. Using the activity rates, determine the amount of
Im not sure how to work this problem?
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