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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has total of $127,944 in overhead. The company

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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has total of $127,944 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: 10 points Cost Quantity/Amount Quantity/Amount Activity Cost Assigned Consumed by Consumed by Pools Cost Driver to Pool Basic Luxury Materials handling Number of moves $ 2,944 18 moves 46 moves Quality Number of control inspections $ 24,900 220 inspections 110 inspections Machine Number of 5, 400 machine 3,700 machine maintenance machine hours $100,100 hours hours eBook Print 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 intermediate calculations and round your final answers to the References nearest whole dollar amount.) Basic Model Overhead Assigned Overhead Assigned Luxury Model 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Basic Model Materials Handling Quality Control Machine Maintenance Total Overhead Assigned 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System O ABC System

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