Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the besic and the luxury. Hazelnut has a total of $175,760 in overhead. The

image text in transcribed

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the besic and the luxury. Hazelnut has a total of $175,760 in overhead. The company hes identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 2,665 $ 39,295 $142,820 Quantity/Amount Consunted by Basic 26 moves 22e inspections 5,428 nachine hours Quantity/Amount Consumed by Luxury 39 noves 110 inspections 4,892 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 Intermediate calculations and round your final answers to the nearest whole dollar amount.) Basic Model Luxury Model Overhead Assigned Overhead Assigned 2 Calculate the activity retes for esch cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Material Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour 3. Calculate the amount of overheed thet Hezelnut 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 Material Handling Quality Control Machine Maintenance Total Overhead Assigned S 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 Material Handling Quality Control Machine maintenance Total Overhead Assigned S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GEN COMBO LOOSELEAF FINANCIAL ACCOUNTING CONNECT ACCESS CARD

Authors: Robert Libby ,Patricia Libby ,Frank Hodge

9th Edition

1259912310, 978-1259912313

More Books

Students also viewed these Accounting questions

Question

b. What groups were most represented? Why do you think this is so?

Answered: 1 week ago