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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 $135,614. Carlise has identified
Carlise Corp, which manufactures ceiling fans, currently has two product lines. the Indoor and the Outdoor. Carlise has total overhead of $135,614. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned Consumed by Indoor Consumed by 3utdoor Activity Cost Pools Cost Driver to Pool Line Line Materials handling Number of moves $19,434 543 moves 343 moves Quality control Number of inspections $81,813 5,533 inspections 3,533 inspections Machine maintenance Number of machine hours $34,433 33,333 machine hours 13.333 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 nal answers to the nearest whole dollar amount} 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. [Round your answers to 2 decimal places.) Handling _I_ ouauwcm _I__ || News... 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 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 Model 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
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