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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 $131,392 in overhead.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $131,392 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 Cost Driver to Pool Materials handling Quality control Number of moves Number of inspections $ 2,562 Machine maintenance Number of machine hours $ 28,830 $100,000 Quantity/Amount Consumed by Basic 25 moves 220 inspections 5,800 machine hours Quantity/Amount Consumed by Luxury 36 moves 110 inspections 4,200 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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