Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned Quantity or Amount Consumed by Quantity or Amount Consumed by Outdoor Line to Pool Indoor Line $ 20,910 $ 85,120 $ 34,790 570 moves 6,100 inspections 28,000 machine hours. 450 moves 5,100 inspections 21,000 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. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?

Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned Quantity or Amount Consumed by Quantity or Amount Consumed by Outdoor Line to Pool Indoor Line $ 20,910 $ 85,120 $ 34,790 570 moves 6,100 inspections 28,000 machine hours. 450 moves 5,100 inspections 21,000 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. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?

Name: Carlise has identified the following information about its overhead a
Uploaded: 2024-03-20T06:32:49.000Z
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Description: Carlise has identified the following information about its overhead activity pools and the two product lines:Activity PoolsMaterials handlingQuality controlMachine maintenanceCost DriverNumber of movesNumber of inspectionsNumber of machine hoursCost

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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