questions

PA4-2 (Algo) 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 $140,476 Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned consumed by Indoor Consumed by Outdoor Activity Cost Pools Cost Driver to Pool Materials handling Number of moves $ 20,696 570 moves 470 moves Quality control Number of inspections $ 90,200 5,500 inspections 5,500 inspections Machine maintenance Number of machine hours $29,580 28,000 machine hours 6,000 machine hours Line Line Required: 1. Suppose Carlise 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.) Overhead Assigned Indoor Model Outdoor Model Total $ D 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Indoor Line Material Handling Quality Control Machine maintenance Activity Proportions Outdoor Line % per Move % per inspection % per Machine Hour % 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Indoor Model Material Handling Quality Control Machine maintenance Total Overhead Assigned $ 0 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Outdoor Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 0 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? Traditional System O ABC System