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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $164,218 in overhead. The
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $164,218 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Quantity/Amount Cost Assigned Consumed by Consumed by Activity Cost Pools Cost Driver Luxury to Pool Basic Number of 3,528 Materials handling 15 moves 57 moves moves Number of Quality control 30,690 180 inspections 130 inspections inspections Number of Machine maintenance machine hours $130,000 5,800 machine hours 4,200 machine hours Required 1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round your intermediate calculations.) 95,246 Assigned Basic Model Luxury Model 68,972 overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. Activity Rates Materials per Move per Inspection Quality Control per Machine Maintenance
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