PA4-1 Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6]?

Log In to Canvas Assignments ACC 202 1um HW 4 C ezto.mheducation.com PA4-1 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 $140,452 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Assigned Activity Cost Pools to Pool Consumed by Quantity/Amount Consumed by Cost Driver $3,927 Basic Materials handling Number of moves Luxury Quality control Number of inspections $ 31,525 14 moves 63 moves Machine maintenance 160 inspections Number of machine hours $ 105,000 5,300 machine hours 165 inspections 5,200 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 Overhead Assigned Luxury Model Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. Activity Rates Materials Handling per Move Quality Control per Inspection Machine Maintenance per Machine Hour 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. MacBook AirHW 4 C ezto.mheducation.com 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Basic Model 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 Materials 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? Traditional System O ABC System References eBook & Resources Worksheet Learning Objective: 04-01 Assian indirect MacBook Air