Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $$200,512$ in overhead.

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

$\backslash$table$[[$Activity Pools,Cost Driver,$\backslash$table$[[$Cost Assigned$],[$to Pool$]],\backslash$table$[[$Quantity or$],[$Amount Consumed$],[$by Basic$]],$Quantity or Amount Consumed by Luxury$],[$Materials handling,Number of moves,$$4,312,26$ moves,$51$ moves$],[$Quality control,Number of inspections,$$34,200,200$ inspections,$100$ inspections$],[$Machine maintenance,Number of machine hours,$$162,000,5,400$ hours,$5,400$ 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 Hazelnut's 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 Ixyry 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?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Required $4$

Required $5$

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.

Basic Model

Overhead Assigned

Luxury Model

Overhead Assigned