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in de Hazelnut Corp. ma y has to product in the basic and the luxury Hazelnut The company has entified the following infomation about its

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in de Hazelnut Corp. ma y has to product in the basic and the luxury Hazelnut The company has entified the following infomation about its overhead activity.cost pools and the products Cont Quan Amo Anourt Corse Assigned Consumed by by Activity Cost Pools Cost Driver Basic Luxury Marer handling Number of moves $ 3710 18 moves 62 moves Onity control Number of inspections $ 33.000 230 inspections 150 species Machine maintenance Number of machine hours $141,400 4200 machine hours 5.900 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 ine. (Do not round intermediate calculators 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 Harens ABC system Activity Rates Material Handling Day Control Machine Maintenance por Move per inspection per Machine 3. Calculate the amount of overhead that Hazelnut will assign to the basic line fit uses an ABC system. Materials Handling Quality Control Machine Maintenance Total Overhead Assigned 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. Luxury Model Material Handling Quality Control Machine maintenance Total Overhead Assigned 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? O Traditional System O ABC System References eBook & Resources Worksheet Learning Objective: 04-01 Assign indirect Learning Objective: 04:04 Assign indirect costs to product prin sing eine

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