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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?

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