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Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Cost Driver
Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Cost Driver Number of moves Machine maintenance Required: Cont Assigned to Pool $18,200 Number of inspections Number of machine hours $ 83,160 $ 27,360 Quantity or Amount Consumed by Indoor Line 560 moves 5,700 inspections 28,000 machine hours Quantity or Amount Consumed by Outdoor Line 350 moves 4,200 inspections 8,000 machine hours. 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. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 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. Overhead Assigned Indoor Model Outdoor Model Total $
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