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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

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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 Required: Cost Assigned Cost Driver to Pool Number of moves $ 20,200 $ 87,200 Number of machine hours $ 29,600 Number of inspections Quantity or Amount Consumed by Indoor Line 610 moves 6,400 inspections 26,000 machine hours Quantity or Amount Consu Outdoor Line 400 moves 4,500 inspections 11,000 machine hou 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?

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