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PA4-1 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6] Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines,
PA4-1 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6] Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $123,231 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Materials handling Quality control Number of moves Number of inspections Cont Assigned to Pool $ 3,311 $ 25,920 Machine maintenance Number of machine hours $ 94,000 Required: Quantity/Amount Consumed by Basic 25 moves 200 inspections Quantity/Amount Consumed by Luxury 52 moves 100 inspections 5,800 machine hours 3,600 machine hours 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
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