Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $165,137 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 Quantity/Amount Consumed by Basic Quantity/Amount Consumed by Luxury

Materials handling Number of moves $2,992 24 moves 44 moves

Quality control Number of inspections $37,345 210 inspections 175 inspections

Machine maintenance Number of machine hours $124,800 4,800 machine hours 5,600 machine hours

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

2.Calculate the activity rates for each cost pool in Hazelnut's ABC system.

Materials Handling per move

Quality Control per inspection

Machine Maintenance per machine hour

3.Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.

Material handling

Quality control

Machine Maintenance

Total overhead assigned

4.Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.

Material handling

Quality control

Machine Maintenance

Total overhead assigned