Need help correcting what is wrong. Thankyou
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: Cost Assigned to Pool $ 3,542 $ 27,720 $115,200 Activity Cost Pools Cost Driver Materials handling Number of moves Quality control Number of inspections Machine maintenance Number of machine hours Quantity/Amount Quantity/Amount Consumed by Consumed by Basic 14 moves 63 moves 200 inspections 100 inspections 5,900 machine houra 3,700 machine hours Luxury 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.) Answer is complete and correct. $ Basic Model Luxury Model 90,013 Overhead Assigned 56,449 Overhead Assigned $ 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Materials Handling Quality Control Machine Maintenance Answer is complete and correct. Activity Rates $ 46 per Move $ 92 per Inspection $ 12 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.) Answer is complete but not entirely correct. $ Basic Model Materials Handling Quality Control Machine Maintenance Total Overhead Assigned $ 644 18,480 X 70,800 89,924 $ $ 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.) Answer is complete but not entirely correct. Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ $ 2,898 9,240 44,400 56,538 $ $ 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System ABC System
