Question
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $120,490. Carlise has identified
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $120,490. Carlise has identified the following information about its overhead activity cost pools and the two product lines:
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.) 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) 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.) 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.)
Activity Cost Pools Cost Driver Materials handling Quality control Machine maintenance Number of machine hours Cost Assigned to Pool S 19,680 QuantitylAmount Consumed by ndoor Line 590 moves 6,100 inspections QuantitylAmount Consumed by Outdoor Line 370 moves 4,300 inspections 14,000 machine hours Number of moves Number of inspections 71,760 29,050 21,000 machine hours
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