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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 $164,385 in overhead.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $164,385 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 Materials handling Quality control Number of moves Number of inspections $ 3,185 Machine maintenance Number of machine hours $ 32,400 $128,800 Quantity/Amount Consumed by Basic 14 moves 220 inspections 5,500 machine hours Quantity/Amount Consumed by Luxury 51 moves 110 inspections 3,700 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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