Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $138,440 Carlise has identified

image text in transcribed

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $138,440 Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Assigned to Pool S 20,400 S 84,000 QuantitylAmount Consumed QuantitylAmount Consumed Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours by Indoor Line 640 moves 6,200 inspections by Outdoor Line 360 moves 4,300 inspections 26,000 machine hours S 34,040 20,000 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 calculations and round your final answers to the nearest whole dollar amount.) Overhead Assigned Indoor Model Outdoor Model Total 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Activity Proportions Indoor Line Outdoor Line Materials Handling Quality Control Machine maintenance % % % lper Move | per inspection | 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 Handing Quality Control Machine maintenance Total Overhead Assigned 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.) Outdoor Materials Handling Quality Control Machine maintenance Total Overhead Assigned 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? O Traditional System O ABC System

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting In Detecting Financial Frauds

Authors: Motilal Balram Bhavnani

1st Edition

979-8889950707

More Books

Students also viewed these Accounting questions

Question

3. Is it a topic that your audience will find worthwhile?

Answered: 1 week ago

Question

2. Does the topic meet the criteria specified in the assignment?

Answered: 1 week ago