Question - Lakeside Inc. manufactures four lines of remote control boats and uses activity-based coating to calculate product cost.
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Activity Cost Pools
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Estimated Total Cost
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Estimated Cost Driver
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Machining
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$328,000
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13,200 machine hours
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Setup
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65,000
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290 batches
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Quality Control
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87,000
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900 inspections
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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.