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 $137,175. Carlise has identified

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $137,175. 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 to Pool $ 19,695 $ 91,560 $ 25,920 Quantity/Amount Consumed by Indoor Line 630 moves 6,200 inspections 26,000 machine hours Quantity/Amount Consumed by Outdoor Line 380 moves 4,700 inspections 6,000 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 Outdoor Line Indoor Line Materials Handling % % per Move Quality Control % % per Inspection % per Machine Hour Machine maintenance % 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 $ 0 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermed 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 $ 0

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

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan

18th Edition

0137879199, 9780137879199

More Books

Students also viewed these Accounting questions

Question

12.6 Analyze the emerging emphasis on employee recognition.

Answered: 1 week ago