Question
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $127,964 in overhead.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $127,964 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 Machine maintenance Quantity/Amount Consumed by Basic Cost Cost Driver Assigned to Pool Number of moves $ 2,904 Number of inspections $ 33,060 Number of machine hours $ 92,000 220 inspections 5,300 machine hours 18 moves Quantity/Amount Consumed by Luxury 48 moves 110 inspections 3,900 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
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