Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $160,530 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 Assignedto Pool Quantity/Amount Consumed byBasic Quantity/Amount Consumed byLuxuryMaterials handling Number of moves $ 3,000 30 moves 45 movesQuality control Number of inspections $ 26,730 220 inspections 110 inspectionsMachine maintenance Number of machine hours $ 130,800 5,500 machine hours 5,400 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.)2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.)3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.)4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.)5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?multiple choiceTraditional SystemABC System

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $160,530 In overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity / Amount Quantity/Amount Assigned Consumed by Consumed by Activity Cost Pools Cont Driver to Pool Basic Luxury Materials handling Number of moves 3,000 10 moves 45 moves Quality control Number of inspections 26,730 220 inspections 110 inspections Machine maintenance Number of machine hours $ 130,800 5, 500 machine hours 5, 400 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 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Materials Handling Der 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. (Round your intermediate and final answers to the nearest whole dollar.) Basic Model Materials 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. (Round your intermediate and final answers to the nearest whole dollar.) Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? O Traditional System O ABC System