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PB4-2 (Static) Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6] Paradiso Corporation is the manufacturer of food processors.
PB4-2 (Static) Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6] Paradiso Corporation is the manufacturer of food processors. It currently has two product lines, the Basic and the Industrial. Paradiso has $85,170 in total overhead. The company identified the following information about its overhead activity pools and the two product lines: Required: 1. Suppose Paradiso used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. 2. Calculate the activity proportions for each activity pool in Paradiso's ABC system. 3. Calculate the amount of overhead that Paradiso will assign to the Basic product line if it uses an ABC system. 4. Determine the amount of overhead Paradiso will assign to the Industrial product line if it uses an ABC system. 5. Compare the results for a traditional system with those of an ABC system. Which do you think is more accurate? Complete this question by entering your answers in the tabs below. Calculate the activity proportions for each activity pool in Paradiso's ABC system. Note: Do not round intermediate calculations. Round your answers to 2 decimal places
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