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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 Machine maintenance
Carlise has identified the following Information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Machine maintenance Required: Cost Driver Number of moves Number of inspections Quantity or Amount Consumed by Indoor Line 620 moves Cost Assigned to Pool $ 20,928 $ 81,810 Number of machine hours $ 29,250 6,000 inspections 26,000 machine hours Quantity or Amount Consumed by Outdoor Line 470 moves 4,100 inspections 13,000 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. Indoor Model Outdoor Model Total Overhead Assigned S 0
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