Question

ABC Project Saved Help Save & Exit Submit Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $133,607 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned Consumed by Consumed by Activity Cost Pools Cost Driver to Pool Basic Luxury Materials handling Number of moves S 4,212 23 moves 55 moves Quality control Number of inspections S29,295 220 inspections 110 inspections Machine maintenance Number of machine hours $100,100 5,200 machine hours 3,900 machine hours points eBook 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.) Print References Basic Model Luxury Model Overhead Assigned Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour

Answer 1

1) Overhead assigned to traditional costing

	Overhead assigned
Basic model (133607/9100*5200)	76347
Luxury model	57260

2) Overhead rate

	Overhead rate
material handling (4212/78)	54 per move
Quality control (29295/330)	89 per inspection
Machine maintenance (100100/9100)	11 per machine hour

3) Overhead assigned to Basic Model

	Overhead assigned
Material handling (54*23)	1242
Quality control (220*89)	19580
Machine maintenance	57200
Total overhead	78022

4) Overhead assigned to Luxury model

	Overhead assigned
Material handling (55*54)	2970
Quality control (110*89)	9790
Machine maintenance	42900
Total overhead	55660

5) ABC Cost