1 answer

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury....

Question:

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a tota3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. (Round your interme5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? O Traditiona

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

1) Overhead assigned under traditional costing

Basic model (137061/10300*5700) 75849
Deluxe model 61212

2) Overhead rate

Material handling (2666/62) 43 per move
Quality inspection (31395/360) 87 per inspection
Machine maintenance (103000/10300) 10 per machine hour

3) Overhead cost assigned to Basic model

Basic
Material handling 430
Quality inspection (240*87) 20880
Machine maintenance 57000
Total overhead assigned 78310

4) Overhead cost assigned to deluxe model

Deluxe
Material handling (52*43) 2236
Quality inspection (120*87) 10440
Machine maintenance 46000
Total overhead assigned 58676

5) ABC Cost system

.

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. The half life of the isotope is the half value of 190 mg then solve for x. Your answer is   days....
1 answer
= Mode - Delay - - What is the internal rate of return (IRR) for this...
= Mode - Delay - - What is the internal rate of return (IRR) for this project? Would you accept the project if the discount rate is 18 percent. Year 0 1 2 3 4 -1123.756 400 400 400 400 IRR =18 %, accept the project IRR =15.8 %, accept the project IRR =25.6 %, accept the project IRR =15.8 %,reject th...
1 answer
Item 1 The 23-kg rod is released from rest when 0 = 0º (Figure 1) Part...
Item 1 The 23-kg rod is released from rest when 0 = 0º (Figure 1) Part A Determine its angular velocity when 0 = 90°. The spring has an unstretched length of 0.5 m. Express your answer to three significant figures and include the appropriate units. μΑ ? = وال ...
1 answer
A heat lamp emits infrared radiation whose electric field is E_rms = 3500 N/C. (a) What...
A heat lamp emits infrared radiation whose electric field is E_rms = 3500 N/C. (a) What is the average intensity of the radiation? (b) The radiation is focused on a person's leg over a circular area of radius 3.3 cm. What is the average power delivered to the leg? (c) The portion of the leg bein...
1 answer
If M is the midpoint of AB, find the coordinates of A, given M(1, 2) and B(3, 7). what is the answer to this question? Can someone please help me?
If M is the midpoint of AB, find the coordinates of A, given M(1, 2) and B(3, 7). what is the answer to this question? Can someone please help me?...
1 answer
3. A photon with a frequency of 5.00 E14 Hz strikes a metal surface whose work...
3. A photon with a frequency of 5.00 E14 Hz strikes a metal surface whose work function is 1.62 eV. Calculate the a) energy of the incoming photon, the b) maximum kinetic energy of the ejected photoelectron, and the c) threshold frequency (3 points). alculate the many energy of the incoming photom...
1 answer
What is the approximate distance of a thunderstorm if you notice a three-second delay between the flash of lightning and the sound of the thunder?
What is the approximate distance of a thunderstorm if you notice a three-second delay between the flash of lightning and the sound of the thunder?...
1 answer
Question 2 of 2 -/15 View Policies Current Attempt in Progress Arandom sample of 1500 residential...
Question 2 of 2 -/15 View Policies Current Attempt in Progress Arandom sample of 1500 residential telephones in Phoenix found that 380 of the numbers were unlisted. A random sample in the same year of 1200 telephones in Scottsdale found that 315 were unlisted. Round your answers to four decimal plac...
1 answer
Stacy wants to lose 30 pounds within the next 4 months and keep it off for...
Stacy wants to lose 30 pounds within the next 4 months and keep it off for good. She's trying to be healthier now that she is in her 40's and wants to be active with her kids. Her friend told her to try drinking shakes like she has done to lose 20 pounds. Stacy is apprehensive as she's n...
1 answer
A particular singly charged particle is observed to be moving with a speed of 0.54c in...
A particular singly charged particle is observed to be moving with a speed of 0.54c in a circular path of radius 0.28 m in a perpendicular magnetic field of 2.0 T. What is the particles mass? Please show full workings out and explain the steps so I can follow. Thanks!...
1 answer
Explain the differences between a sample and a population
Explain the differences between a sample and a population...
1 answer
In order to pull out the nail at B, the force F exerted on the handle...
In order to pull out the nail at B, the force F exerted on the handle of the hammer must produce a clockwise moment of 410 lb- in about point A (Figure 1) Part A Determine the required magnitude of force F Express your answer with the appropriate units. Figure 1 of 1 > P 10.52 lb 30° Smit Pre...
1 answer
Map Deb pling learning Identify the reagents for all three steps. Draw the structures of organic...
Map Deb pling learning Identify the reagents for all three steps. Draw the structures of organic compounds Aand B Omit byproducts. Reagent 1 Select answer Reagent 2 Select answer 3 Reagent 3 Select answer OH A O Previous Check Answer Next Ext Hint...
1 answer
/Which of the following statements about derivatives is correct? a) In an efficient market, derivatives can...
/Which of the following statements about derivatives is correct? a) In an efficient market, derivatives can be used to arbitrage and achieve excess return. b) Derivatives have high real value certainty. c) Derivatives are not always more liquid than their underlying basic securities.X d) Derivatives...
1 answer
Pre term labor knows the followingt pathophysiology sign and symptoms diagnostic test medical management patient teaching...
pre term labor knows the followingt pathophysiology sign and symptoms diagnostic test medical management patient teaching system affected and maniafestation nursing intervention referrence...
1 answer
DETAILS MY NOTES ASK YOUR TEACHER Sara is a big hip-hop music fan. Her friend Matt...
DETAILS MY NOTES ASK YOUR TEACHER Sara is a big hip-hop music fan. Her friend Matt is a big rap music fan. They cach have a huge library of songs in their digital music libraries. They cach randomly sample 50 songs from their libraries and record the lengths of the songs selected. The average of the...
1 answer
Need answers $200 cash 2. The shelving was sold for PROBLEM 9.4A During the curent year,...
Need answers $200 cash 2. The shelving was sold for PROBLEM 9.4A During the curent year, Ramirez Developers disposed of plant assets in the following transactions Disposal of Plant Assets Office equipment costing $26,000 was given to a scrap dealer at no charge. At the date of disposal, accumula...