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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 $145,224 in overhead. The
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $145,224 in overhead.
The company has identified the following information about its overhead activity cost pools and the two product lines:
Hazelnut Corp. manufactures lawn omaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $145,224 in overhead The company has identfied the folowing information about its overhesd activity cost pools and the two product lines: t Consumed ned by Bas c Activity Cost Poo's Materials handling Quaity control Machine maintenance by Luxury 50 maves 120 inspect ons 5,000 mach ne hours Cost Driver $ 29,760 Number of machine hours 111,600 4.300 machine hours Required: 1. Suppose Hazelnut used a traditional costing systen with machine hours as the cost driver. Determine the amount af averhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Basic Model Overheed Assigned Luxury Model Overheed Assigned 2. Calculate the activity rates for each cost pool in Hazelnuts ABC system. Activity Rates Msteriale Handling Quaity Control Machine Maintenance oer Move pur Inspection 3. Calculate the amount of overhcad that Hazcinut will assign to the besic line if it uses an ABC systcm. Basic Model Materala Handling Quaity Control Machine Maintenance Total Overhead Assigned 4. Dstermine the amount of ovehead Hazelnut will assign to the luxury line if it uses an ABC systom, Model Msteriale Handling Qua ty Control Machine maintenance Total Overhead Assigned
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