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Help and if you could explain the calculations that would really help. Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic
Help and if you could explain the calculations that would really help.
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $146,462 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Cost Quantity/Amount Assigned Consumed by to Pol Basia 14 sover $ 27,720 200 inspections $115,200 5,900 machine hours Activity Cont Pnols Cost. Driver Materials handling Number of moves Quality control Number of inspectione Machine maintenance Number of machine hours $ 3,542 63 moves 100 inspections 3,700 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 Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your Intermediate and final answers to the nearest whole dollar.) Basic Model Materials Handling Quality Control Machine Maintenance Total Overhead Assigned S OLEH Uverneau Assigned 4. Determine the amount of overhead Hazelnut will assign to the luxury line if It uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned S Compare the results for at ditional system with tha an ABC system. Which do you think more accurate? Traditional System ABC SystemStep by Step Solution
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