Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $137,061 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned Consumed by Consumed by Activity Cost Pools Cost Driver to Pool Basic Luxury Materials handling Number of moves$ 2,666 10 moves 52 moves Quality control Number of inspections $31,395 240 inspections 120 inspections Machine maintenance Number of machine hours$103,000 5,700 machine hours 4,600 machine hours 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. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Basic Model Luxury Model Overhead Assigned Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar.) Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour
3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Basic Model Materials Handling Quality Control Machine Maintenance Total Overhead Assigned 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. (Round your intermediate and final answers to the nearest whole dollar.) Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? O Traditional System O ABC System ## Answers #### Similar Solved Questions 1 answer ##### A particular radioactive isotope decays from 190 milligrams (mg) to 152 mg in 15 days. Find... A particular radioactive isotope decays from 190 milligrams (mg) to 152 mg in 15 days. Find the half life of the isotope. Hint: Find the rate first. 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