Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $131.142. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 19,392 $ 78,578 $ 33,180 Quantity/Amount Consumed by Indoor Line 680 moves 5,880 inspections 26,eee machine hours Quantity/Amount Consumed by Outdoor Line 410 moves 3,9ee inspections 16,000 machine hours Required: 1. Suppose Carlise 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 calculatlons and round your final answers to the nearest whole dollar amount.) Answer is complete and correct. Overhead Assigned 81,183 49,950 Indoor Model Outdoor Model IS IS Total S 131.142 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Activity Proportions Indoor Line Outdoor Line 0.59% 0.41 % per Move 0.60 % 0.40% per Inspection 0.62 96 0.38 % per Machine Hour Materials Handling Quality Control Machine maintenance 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your Intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your Intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) IS Answer is complete but not entirely correct. Indoor Model Materials Handling 11,441 x Quality Control 47,142 X Machine maintenance S 20.571 X Total Overhead Assigned 79,154 IS Is 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your Intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Outdoor Model Materials Handling S 7,951 X Quality Control S 31,428 X Machine maintenance IS 12.808 Total Overhead Assigned S 51.987 3. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? Traditional System ABC System
