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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 $174,610 in overhead The
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $174,610 in overhead The company has identified the following information about its overhead activity cost pools and the two product lines Cost QuantitylAmount Consumed Quantity/Amount Consumed Activity Cost Pools Materials handling Quality control Machine maintenanceNumber of machine hours Cost Driver Number of moves Number of inspections to Pool S 2,940 S 27,470 $ 144,200 by Basic 25 moves 170 inspections 5,700 machine hours Luxury 35 moves 165 inspections 4,600 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 Overhead Assigned Luxury Model Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour
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