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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total o $177,538 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 o $177,538 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 Cost Driver to Pool Basic Luxury Materials handling Number of moves $ 3,328 20 moves 44 moves Quality control Number of inspections $ 28,710 22e inspections 110 inspections Machine maintenance Number of machine hours $145,500 6,000 machine hours 3,780 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 doll amount.) Basic Model Overhead Assigned Overhead Assigned Luxury Model 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar) Activity Rates Material Handling Quality Control Machine Maintenance per Move per inspection por Machine Hour He 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 Material Handling Quality Control Machine Maintenance Total Overhead Assigned $ 0 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 Material Handling Quality Control Machine maintenance Total 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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