Required information M4-10 to M4-12 Lakeside Incorporated manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Pools Machining Setup Quality control M4-11 (Algo) Assigning Costs Using Activity Rates [LO 4-4] Cost Pool Estimated Total Cost $ 620,000 99,470 154,160 Required: Suppose the Speedy boat requires 2,780 machine hours, 100 batches, and 300 inspections. Using the activity rates, determine the amount of overhead assigned to the Speedy product line. Note: Do not round your intermediate calculations and round your final answers to the nearest dollar amount. Machining Setup Quality Control Total Overhead Allocated Overhead $ Estimated Cost Driver 20,000 machine hours 490 batches 940 inspections 0
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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![Required information
M4-10 to M4-12
Lakeside Incorporated manufactures four lines of remote control boats and uses activity-based costing to calculate
product cost.
Activity Pools
Machining
Setup
Quality control
Estimated
Total Cost
$ 620,000
99,470
154,160
M4-11 (Algo) Assigning Costs Using Activity Rates [LO 4-4]
Cost Pool
Machining
Setup
Quality Control
Total Overhead
Required:
Suppose the Speedy boat requires 2,780 machine hours, 100 batches, and 300 inspections. Using the activity rates, determine the
amount of overhead assigned to the Speedy product line.
Note: Do not round your intermediate calculations and round your final answers to the nearest dollar amount.
Allocated Overhead
$
Estimated Cost Driver
20,000 machine hours
490 batches
940 inspections
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