Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $128,366. 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 $ 18,336 650 moves 310 moves Quality control Number of inspections $ 84,750 6,300 inspections 5,000 inspections Machine maintenance Number of machine hours $ 25,280 26,000 machine hours 6,000 machine hours 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 $0 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Activity Proportions Indoor Line Outdoor Line Materials Handling % % per Move Quality Control % % per Inspection Machine maintenance % % 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 Materials 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

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $128,366. 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 $ 18,336 650 moves 310 moves Quality control Number of inspections $ 84,750 6,300 inspections 5,000 inspections Machine maintenance Number of machine hours $ 25,280 26,000 machine hours 6,000 machine hours 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 $0 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Activity Proportions Indoor Line Outdoor Line Materials Handling % % per Move Quality Control % % per Inspection Machine maintenance % % 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 Materials 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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		$	18,336	650 moves	310 moves
Quality control	Number of inspections		$	84,750	6,300 inspections	5,000 inspections
Machine maintenance	Number of machine hours		$	25,280	26,000 machine hours	6,000 machine hours

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	$0

2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.)

	Activity Proportions
	Indoor Line		Outdoor Line
Materials Handling		%		%	per Move
Quality Control		%		%	per Inspection
Machine maintenance		%		%	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
Materials 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

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