Determine amount of overhead assigned to luxury product line

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Question - Lakeside Inc. manufactures four lines of remote control boats and uses activity-based coating to calculate product cost.

Activity Cost Pools

Estimated Total Cost

Estimated Cost Driver

Machining

$328,000

13,200 machine hours

Setup

65,000

290 batches

Quality Control

87,000

900 inspections

Suppose the Speedy beet requires 4,900 machine hours, 235 inspections, and 69 batches.

Using the activity rates, determine the amount of overhead assigned to the Luxury product line.

Reference no: EM131750910

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