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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 $134,270 in overhead.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $134,270 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Materials handling Quality control Cost Driver Number of moves Number of inspections Cost Assigned to Pool $ 3,150 $32,120 Quantity/Amount Consumed by Basic 21 moves 220 inspections $99,000 5,300 machine hours Quantity/Amount Consumed by Luxury 42 moves 4,600 machine hours 110 inspections Machine maintenance Number of 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 $ 71,882 Overhead Assigned $ 62,388 Overhead Assigned
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