Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $184,100 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		$	3,150		16 moves	54 moves
Quality control	Number of inspections		$	27,950		190 inspections	135 inspections
Machine maintenance	Number of machine hours		$	153,000		5,300 machine hours	4,900 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 your intermediate calculations.)

Basic Model		Overhead Assigned
Luxury Model		Overhead Assigned

2.	Calculate the activity rates for each cost pool in Hazelnuts ABC system.

	Activity Rates
Materials Handling		per Move
Quality Control		per Inspection
Maintenance		per Machine Hour

+

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

Basic Model
Materials Handling
Quality Control
Maintenance
Total Overhead Assigned

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

Luxury Model
Materials Handling
Quality Control
Maintenance
Total Overhead Assigned