Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $135,117 in overhead.

The company has identified the following information about its overhead activity pools and the two product lines:

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Activity Pools	Cost Driver	Cost Assigned to Pool	Quantity or Amount Consumed by Basic		Quantity or Amount Consumed by Luxury
Materials handling	Number of moves	$ 3,542	20	moves	57	moves
Quality control	Number of inspections	$ 30,375	200	inspections	100	inspections
Machine maintenance	Number of machine hours	$ 101,200	5,600	machine hours	3,600	machine hours

Required:

Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.

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

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

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

Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?

Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Calculate the activity rates for each activity pool in Hazelnut's ABC system. Note: Round your answers to the nearest whole dollar. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Note: Round your intermediate and final answers to the nearest whole dollar. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. Note: Round your intermediate and final answers to the nearest whole dollar. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate