Carlise has identified the following information about its overhead activity pools and the twoproduct lines:

Activity PoolsCost DriverCost Assigned to PoolQuantity or Amount Consumed by Indoor LineQuantity or Amount Consumed by Outdoor LineMaterials handlingNumber of moves$ 20,176560moves480movesQuality controlNumber of inspections$ 77,2506,500inspections3,800inspectionsMachine maintenanceNumber of machine hours$ 32,40027,000machine hours9,000machine hours

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 Carlises 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.

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 Carlises 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.

1. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?
2. Calculate the activity proportions for each activity pool in Carlises 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. 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. Complete this question by entering your answers in the tabs below. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. Note: Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Calculate the activity proportions for each activity pool in Carlise's ABC system. Note: Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. 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. 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 2 decimal places and round your final answers to the nearest whole dol amount