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

Activity Pools Cost Driver Cost Assigned to Pool Quantity or Amount Consumed by Indoor Line Quantity or Amount Consumed by Outdoor Line

Materials handling Number of moves $ $19,285590$ moves $360$ moves

Quality control Number of inspections $ $89,6006,200$ inspections $5,000$ inspections

Machine maintenance Number of machine hours $ $32,93027,000$ machine hours $10,000$ 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.

$2.$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?