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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 $130,700 in overhead.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $130,700 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Assigned to Pool $ 2,580 Cost Driver Materials handling Quality control Number of moves Number of inspections $ 33,120 Machine maintenance Number of machine hours Quantity/Amount Consumed by Basic 21 moves 200 inspections $ 95,000 5,200 machine hours Quantity/Amount Consumed by Luxury 39 moves 100 inspections 4,300 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 rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Materials Handling Quality Control Machine Maintenance Activity Rates per Move per Inspection per Machine Hour
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