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Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $127,052. Carlise has identified
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $127,052. Carlise has identified the following information about its overhead activity cost pools and the two product lines:
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $127,052 Carlise has identlfied the following Information about its overhead activity cost pools and the two product lines Cost Actvity Cost Poole Materials handling Quality contro Machine mainteniance Coet Drver Number of moves Number of inspections Number of machine haurs to Pool S 20,972 S 81,120 S 24,95O by Incoor Line 570 movBS 6,100 irspect ans 21,000 machine hours by Outdoor LIne 500 mov83 4,300 inspections 11,000 rnachine 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 calculations and round your final answers to the nearest whole dollar amount.) Overhead Assigned Indoor Model Outdoo Model 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Activity Indoor Line Outdoor Linc Materials Handling % iper Move Quality Canlro % |per Machine Hour 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.) Indoor Model Materials Handling Quality Contrnl Machine maintenanc: Total Overmead Assigned 4. Determine the amount af overhead Carlise will assign to the Outdoor line f it uses an ABC system. (Round your Intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Outdoor Model Materials Handling Quality Control Total Overhead Assigned 5. Compare the results for a traditional syste with an ABC systen. Which do you think is more accurale? Traditional System ABC System
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