The company has identified the following information about i

The company has identified the following information about its overhead activity cost pools and the two product lines:

PA4-1 Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-6) Hazelnut Corp. manufactures lawn arnaments. It currenly has twa product lines, the basic and the luxure. Hazelnut has a tot of S168.066 in overhead The company has identified the folowing information about its overhead aclivity cos pobls and the tap product ines Cost Assigned to Poal S 3,705 Coreumed by Coneumed by Basc 20 movee Acttvity Cast Pools Maleñals handing Quality control Mathine maintenance Cost Drtwer Number of moves Numbar of inspant ons Number of machine houre 45 movers 80 Insonctions S132.800 5,400 machine hours,800mchine hours Required: 1, Suppose Hazelnut used a traditionel costing Byetem with machine hours a8 the ooet driver. Determine the amount of ovemead aeeigned to eech product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Banic Model Overhesd Assigre Limary Modal 2. Caloulate the activlty ratee for eean cost pool in Hazehure ABC eystem Activity Rates Matanals Handing wlty Coral ar Mawa par Insacion per Machin Hour 3. Calaulate the amaunt of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Basic Model Matenials Handing Quality Control Total Overmead Assigned

Solution

Ans 1 Predetermined overhead rate using machine hours 166065/(5400+4800) 16.28 Basic Model (5400*16.28) 87917 Luxuary model (4800*16.28) 78148 ans 2 in $ Material handling 3705/(20+45) 57 Quality control 29760/(240+80) 93 Machine Maintanence 132600/(5400+4800) 13 ans 3 Basic Model Material handling $57*20 1140 Quality control 93*240 22320 Machine Maintanence 13*5400 70200 Total overhead assigned 93660 ans 4 luxuary overhead Material handling $57*45 2565 Quality control 93*80 7440 Machine Maintanence 13*4800 62400 Total overhead assigned 72405 ans 5 Abc costing If any doubt please comment