Question
PA4-2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6] Carlise Corp., which manufactures ceiling fans, currently has two
PA4-2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6] Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $125,860. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 19,760 570 moves 470 moves Quality control Number of inspections $ 76,840 6,400 inspections 4,900 inspections Machine maintenance Number of machine hours $ 29,260 19,000 machine hours 19,000 machine hours
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