Question
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $147,972 in overhead. The
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $147,972 in overhead.
The company has identified the following information about its overhead activity cost pools and the two product lines:
| Activity Cost Pools | Cost Driver | Cost Assigned to Pool | Quantity/Amount Consumed by Basic | Quantity/Amount Consumed by Luxury | |||
| Materials handling | Number of moves |
| $ | 3,822 |
| 18 moves | 60 moves |
| Quality control | Number of inspections |
| $ | 33,750 |
| 200 inspections | 175 inspections |
| Machine maintenance | Number of machine hours |
| $ | 110,400 |
| 4,600 machine hours | 4,600 machine hours |
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Accounting Cases In Hong Kong The First Hksa Case Competition
Authors: HKSA Case, Monograph Work GP
1st Edition
9629370883, 978-9629370886
