Question

Review References Mailings Aa AOE View E 211 AaBbccde AaBbccde AaBbCcDc AaBb CcDdEx Aa Heading 1 Heading 2 T No Spacing Carlise Corp, which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor Carlise has total overhead of $125,932 Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Activity Cost Assigned Consumed by Indoor Consumed by Outdoor Cost Driver to Pool Line Materials Number of handling moves $ 22,042 I 640 moves 430 moves Number of Quality controlinspections $ 74,370 5,600 inspections 5,500 inspections Machine Number of maintenance machine hours $ 29,520 30,000 machine hours 6,000 machine hours Required: 1. Suppose Carlise 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.) Overhead Assigned Indoor Model $104.943 Outdoor Model $20.989 Total $125.932 2. Calculate the activity proportions for each cost pool in Carlie's ABC system. (Round your answers to 2 decimal places.) Indoor Line 0.601 Material Handling Quality Control Machine maintenance Activity Proportions Outdoor Line % per Move % per inspection Xper Machine Hour ed States) Focus MacBook Pro

Answer 1

Cost Pool	Amount	Indoor line	Outdoor Line
Material Handling	22042	640	430
QC	74370	5600	5500
Machine Maintenance	29520	30000	6000
Total	125932
	Overhead assigned
Indoor	104,943
Outdoor	20,989
Total	125,932
Activty proportion	Indoor line	Outdoor Line
Material Handling	59.81%	40.19%
QC	50.45%	49.55%
Machine Maintenance	83.33%	16.67%
Assigned	Indoor	Outdoor
Material Handling	13184	8858
QC	37520	36850
Machine Maintenance	24600	4920
Total overhead assigned	75304	50628
ABC System is better

A Indoor line 640 1 Cost Pool 2 Material Handling 3 QQ 4. Machine Maintenance 5 Total Amount 22042 174370 29520 =SUM(B2:B4) Outdoor Line 430 5500 6000 5600 30000 7 8 Indoor 9 Outdoor 10 Total Overhead assigned =B5*C4/SUM(C4:04) =B5*D4/SUM(C4:04) =SUM(B8:39) 11 12 Activty proportion Indoor line Outdoor Line 13 Material Handling =C2/SUM($C2:$D2) =D2/SUM($C2:$D2) 14 QC =C3/SUM($C3:$D3) =D3/SUM($C3:$D3) 15 Machine Maintenance =C4/SUM($C4:$D4) 1=D4/SUM($C4:$D4) 16 17 18 Assigned Indoor Outdoor 19 Material Handling =$B2*B13 =$B2*С13 20 QC =$B3*B14 =$B3*C14 21 Machine Maintenance =$B4* B15 =$B4*C15 22 Total overhead assigned =SUM(B19:B21) =SUM(C19:021) 23 24 ABC System is better