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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 $139,400. Carlise has identified
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400. Carlise has identified the following information about its overhead activity cost pools and the two product lines:
Activity Cost Pools | Cost Driver | Cost Assigned to Pool | Quantity/Amount Consumed by Indoor Line | Quantity/Amount Consumed by Outdoor Line | |||
Materials handling | Number of moves | $ | 20,000 | 575 moves | 425 moves | ||
Quality control | Number of inspections | $ | 82,500 | 6,000 inspections | 4,000 inspections | ||
Machine maintenance | Number of machine hours | $ | 36,900 | 21,000 machine hours | 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.)
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