Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 3,552 $ 35,200 $ 120,900 Complete this question by entering your answers in the tabs below. Basic Model Ion Model Amount Consumed by Basic Overhead Assigned Ourhood Aceinnad 10 moves 220 inspections 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. 2. Calculate the activity rates for each activity pool in Hazelnut's ABC system. 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Required 5 machine 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? 5,200 hours Quantity or Amount Consumed by Luxu 64 moves 110 inspections 4,100 machine hours. Required 1 Required 2 Required 3 Required 4 Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 3,552 $ 35,200 $ 120,900 Complete this question by entering your answers in the tabs below. Basic Model Ion Model Amount Consumed by Basic Overhead Assigned Ourhood Aceinnad 10 moves 220 inspections 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. 2. Calculate the activity rates for each activity pool in Hazelnut's ABC system. 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Required 5 machine 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? 5,200 hours Quantity or Amount Consumed by Luxu 64 moves 110 inspections 4,100 machine hours. Required 1 Required 2 Required 3 Required 4 Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 5CE: Roberts Company produces two weed eaters: basic and advanced. The company has four activities:...
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Question
![Activity Pools
Materials handling
Quality control
Machine maintenance
Cost Driver
Number of moves
Number of inspections
Number of machine hours
Cost Assigned
to Pool
Basic Model
Timing Model
$ 3,552
$ 35,200
Complete this question by entering your answers in the tabs below.
Overhead Assigned
Overhead Accinned
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.
2. Calculate the activity rates for each activity pool in Hazelnut's ABC system.
3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.
Required 5
Quantity or
Amount Consumed
by Basic
$ 120,900 5,200 hours
4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.
5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?
10 moves
220 inspections
machine
Required 1 Required 2 Required 3 Required 4
Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
assigned to each product line.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Quantity or Amount Consumed by Luxury
64 moves
110 inspections
4,100 machine hours
‒‒‒](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31216b0a-54fb-497c-8b2b-72b351da3d48%2F58c962f3-7eac-45f9-9011-90961d88bcae%2F226xv6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Activity Pools
Materials handling
Quality control
Machine maintenance
Cost Driver
Number of moves
Number of inspections
Number of machine hours
Cost Assigned
to Pool
Basic Model
Timing Model
$ 3,552
$ 35,200
Complete this question by entering your answers in the tabs below.
Overhead Assigned
Overhead Accinned
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.
2. Calculate the activity rates for each activity pool in Hazelnut's ABC system.
3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.
Required 5
Quantity or
Amount Consumed
by Basic
$ 120,900 5,200 hours
4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.
5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?
10 moves
220 inspections
machine
Required 1 Required 2 Required 3 Required 4
Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead
assigned to each product line.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.
Quantity or Amount Consumed by Luxury
64 moves
110 inspections
4,100 machine hours
‒‒‒
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