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 $113,632 Carlise has identified

image text in transcribed

image text in transcribed

image text in transcribed

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 $113,632 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 Quantity/Amount to Pool Consumed by Indoor Line $ 17,472 630 moves $ 73,440 5,600 inspections $ 22,720 29,000 machine hours Quantity/Amount Consumed by Outdoor Line 280 moves 5,200 inspections 3,000 machine hours ces 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.) ho Indoor Model Outdoor Model Total Overhead Assigned $ 102.979 $ 10.653 $ 113.632 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal place Indoor Line % Materials Handling Quality Control Machine maintenance Activity Proportions Outdoor Line % per 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 es Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 0 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 Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $

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

Step: 3

blur-text-image

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

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

10th edition

78025621, 978-0078025624

Students also viewed these Accounting questions