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Hazelnut Corp. manufactures lawn ornaments? lt currently has two product lines, the basic and the luxury. Hazelnut has a total of $128,550 in overhead. The
Hazelnut Corp. manufactures lawn ornaments? lt currently has two product lines, the basic and the luxury. Hazelnut has a total of $128,550 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost QuantitylAmount ConsumedQuantity/Amount Consumed Assigned to Pool S 3,150 S 30,400 S 95,000 5,000 machine hours Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours by Basic 11 moveS by Luxury 52 moves 120 inspections 4,500 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 Luxury Model Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour
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