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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:

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Cost Assigned to Pool QuantitylAmount Consumed by Indoor Line QuantitylAmount Consumed by Outdoor Line Activity Cost Pools Materials handling Quality control Machine maintenanca Cost Driver Number of moves Number of 520,000 $82,500 536,900 575 moves 6,000 inspections 21,000 machine hours 425 moves 4,000 inspections 20,000 machine hours Number of 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 calculationsand round your final answers to the nearest whole dollar amount) Overhead Assigned 71,400 8,000 139,400 Indoor Model $ Model Total 2. Calculate the activity proportions for each cost pool in Carlise's ABC system (Round your answers to 2 decimal places.) Indoor Line Outdoor Line % Materials Handling Quality Control 3.00 % |per Move % | per Machine Hour 3. Calculate the amount of overhead that Carlise wil assign to the Indoor line if it uses an ABC system. Round your intermediate calculations and final answers to 2 decimal places.) Indoor Model Materials Handling Quality Control Total As 0.00 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. Round your intermediate calculations and final answers to 2 decimal places.) Outdoor Model Materials Handling Quality Control Total As ead 0.00 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? O ABC System O Traditional System

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