Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of$143,484 in overhead.The company has identified the following information about its overhead activity pools and the two product lines:Quantity orAmount Consumedby BasicActivity PoolsMaterials handlingQuality controlMachine maintenanceCost DriverNumber of movesNumber of inspectionsNumber of machine hoursRequired 1Complete this question by entering your answers in the tabs below.Basic ModelLuxury ModelRequired 2 Required 3 Required 4Required:1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overheadassigned to each product line.2. Calculate the activity rates for each activity pool in Hazelnut's ABC system.3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?Cost Assignedto PoolOverhead AssignedOverhead Assigned$ 4,144$ 31,540$ 107,800Required 5< Required 116 moves240 inspectionsmachineSuppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overheadassigned to each product line.Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.5,100 hoursRequired 2 >Quantity or Amount Consumed by Luxury58 moves120 inspections4,700 machine hours

Predetermined Overhead Rate is the rate used to allocate manufacturing overhead cost to cost object…

Hazelnut Corporation manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $143,484 in overhead. The company has identified the following information about its overhead activity pools and the two product lines: Quantity or Amount Consumed by Basic Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Required 1 Required 2 Complete this question by entering your answers in the tabs below. Basic Model Luxury Model 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. Required 3 Required 4 Cost Assigned to Pool $ 4,144 $ 31,540 $ 107,800 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. 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? Overhead Assigned Overhead Assigned Required 5 < Required 1 16 moves 240 inspections machine 5,100 hours 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. Required 2 > Quantity or Amount Consumed by Luxury 58 moves 120 inspections 4,700 machine hours.

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 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...