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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 $140,816 in overhead. The

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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 $140,816 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 Activity Cost Pools Cost Driver Consumed by Materials handling to Pool Basic Luxury Number of moves $ 4,256 29 noves Quality control 47 moves Number of inspections $ 34,560 240 inspections 120 inspections Machine naintenance Number of machine hours $102,800 5,880 machine hours 5,200 machine hours COS 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.) Activity Rates Materials Handing Quality Control Machine Maintenance DES per Move per Inspection 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 Modul Mats Harding Gunity Control Machine Mare TO $ 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 Handing Quality Control Machine maintenance Tot Overhead Assigned $ 0 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System ABC System

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