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4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. (Round your intermediate and final answers

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4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Answer is not complete. Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 0 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System ABC System 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Answer is complete and correct. Materials Handling Quality Control Machine Maintenance Activity Rates s 51 per Move $ 124 per Inspection $ 12 per Machine Hour 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Answer is complete and correct. Basic Model Materials Handling $ 1,020 Quality Control $ 24,800 Machine Maintenance $ 68,400 Total Overhead Assigned $ 94,220 Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $161,272 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned Consumed by Consumed by Activity Cost Pools Cost Driver to Pool Basic Luxury Materials handling Number of moves $ 3,927 20 moves 57 moves Quality control Number of inspections $ 37,345 200 inspections 100 inspections Machine maintenance Number of machine hours $120,000 5,700 machine hours 4,300 machine hours Required: 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Answer is complete and correct. Basic Model $ 91,925 69,347 Overhead Assigned Overhead Assigned Luxury Model $

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