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Carlise has identified the following information about its overhead activity pools and the two product lines: Calculate the amount of overhead that Carlise will assign
Carlise has identified the following information about its overhead activity pools and the two product lines: Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system.
Note: Round your intermediate calculations to decimal places and round your final answers to the nearest whole dollar
amount. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system.
Note: Round your intermediate calculations to decimal places and round your final answers to the nearest whole dollar
amount.
Required:
Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
assigned to each product line.
Calculate the activity proportions for each activity pool in Carlise's ABC system.
Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system.
Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system.
Compare the results for a traditional system with an ABC system. Which do you think is more accurate?
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Required
Required
Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
assigned to each product line.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
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