Lakeside Inc. manufactures four lines of remote control boats and uses activity-based costing to calculate product cost. Activity Cost PoolsEstimatedTotal CostEstimated Cost DriverMachining$334,00013,600machine hoursSetup 76,000420batchesQuality control 103,000830inspections  Compute the activity rates for each of the following activity cost pools:  How do you find the activitiy costs???

Question
Asked Sep 23, 2019

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 $ 334,000 13,600 machine hours
Setup   76,000 420 batches
Quality control   103,000 830 inspections
 

 

Compute the activity rates for each of the following activity cost pools:

 

 

How do you find the activitiy costs???

check_circleExpert Solution
Step 1

Activity rate: Under activity based costing method, the activities responsible for manufacturing a product are identified by the system. The costs are allocated to the products based on the activities. The costs are grouped based on t...

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