Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $141,413 in overhead.

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

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	$ 3,933	21	moves	48	moves
Quality control	Number of inspections	$ 28,480	220	inspections	110	inspections
Machine maintenance	Number of machine hours	$ 109,000	5,100	machine hours	5,800	machine hours

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

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

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