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Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $138,525 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool Quantity or Amount. Consumed by Basic 17 moves Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 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. Complete this question by entering your answers in the tabs below. Required 2 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? Materials Handling Quality Control $ 3,795 $ 37,730 $ 97,000 Required 3 Required 4 Required 5 Calculate the activity rates for each activity pool in Hazelnut's ABC system. Note: Round your answers to the nearest whole dollar. Activity Rates 220 inspections 5,900 machine hours per Move per Inspection Quantity or Amount Consumed by Luxury 52 moves 110 inspections 3,800 machine hours

Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $138,525 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool Quantity or Amount. Consumed by Basic 17 moves Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 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. Complete this question by entering your answers in the tabs below. Required 2 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? Materials Handling Quality Control $ 3,795 $ 37,730 $ 97,000 Required 3 Required 4 Required 5 Calculate the activity rates for each activity pool in Hazelnut's ABC system. Note: Round your answers to the nearest whole dollar. Activity Rates 220 inspections 5,900 machine hours per Move per Inspection Quantity or Amount Consumed by Luxury 52 moves 110 inspections 3,800 machine hours

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Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $138,525 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool Quantity or Amount. Consumed by Basic 17 moves Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 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. Complete this question by entering your answers in the tabs below. Required 2 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? Materials Handling Quality Control Machine Maintenance $ 3,795 $ 37,730 $ 97,000 Required 3 Required 4 Required 5 Calculate the activity rates for each activity pool in Hazelnut's ABC system. Note: Round your answers to the nearest whole dollar. Activity Rates 220 inspections 5,900 machine hours per Move per Inspection per Machine Hour Quantity or Amount Consumed by Luxury 52 moves 110 inspections 3,800 machine hours
Transcribed Image Text:Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $138,525 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool Quantity or Amount. Consumed by Basic 17 moves Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 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. Complete this question by entering your answers in the tabs below. Required 2 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? Materials Handling Quality Control Machine Maintenance $ 3,795 $ 37,730 $ 97,000 Required 3 Required 4 Required 5 Calculate the activity rates for each activity pool in Hazelnut's ABC system. Note: Round your answers to the nearest whole dollar. Activity Rates 220 inspections 5,900 machine hours per Move per Inspection per Machine Hour Quantity or Amount Consumed by Luxury 52 moves 110 inspections 3,800 machine hours
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