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File Edit View History Bookmarks People Window Help O ezto.mheducation.com/hm.tpx Bookmarks 064 points Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost Activity Cost Pools Total Cost Estimated Cost Driver $ 334,000 12,000 machine hours Setup Quality control 63,000 87,000 360 batches 710 inspections Compute the activity rates for each of the following activity cost pools: (Round your answers to 2 decimal places.) per Machine Machining Setup Costs Quality Control Hour per Batch per Inspection References eBook & Resources Leaming Objective: 04-04 Assign indirect activity rates Worksheet Difficulty: 1 Easy Check my work ?? 6 do FS F7 FB

Solution

a. Machining $             27.83 per machine hour Setup Costs $           175.00 per batch Quality Control $           122.54 per inspection Working: Calculation of activity Rates: Activity Cost Pools Estimated Total Costs (a) Estimated Cost Driver (b) Activity Rates (a)/(b) Machining $       3,34,000        12,000 Machine hours $             27.83 per machine hour Setup Costs $           63,000              360 batches $           175.00 per batch Quality Control $           87,000              710 inspections $           122.54 per inspection b. Cost Pool Allocated Overhead Machining $           80,717 Setup Costs $           16,625 Quality Control $           37,986 Total Overhead $       1,35,328 Working; Calculation of allocated overhead: Cost Pool Quantity of activity (a) Activity Rate (b) Overhead Assigned (a) x (b) Machining 2900 machine hours $      27.83 per machine hour $           80,717 Setup Costs 95 batches $    175.00 per batch $           16,625 Quality Control 310 inspections $    122.54 per inspection $           37,986 Total Overhead $       1,35,328