Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400.
Carlise has identified the following information about its overhead activity cost pools and the two product lines:
Activity Cost Pools | Cost Driver | Cost Assigned to Pool | Quantity/Amount Consumed by Indoor Line | Quantity/Amount Consumed by Outdoor Line | |||
Materials handling | Number of moves | $ | 20,000 | 575 moves | 425 moves | ||
Quality control | Number of inspections | $ | 82,500 | 6,000 inspections | 4,000 inspections | ||
Machine maintenance | Number of machine hours | $ | 36,900 | 21,000 machine hours | 20,000 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.)
. Calculate the activity proportions for each cost pool in Carlise’s ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)
4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.)
5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?
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Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400.
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $132,378. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 18,228 560 moves 420 moves Quality control Number of inspections $ 86,250 5,500 inspections 6,000 inspections...
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $142,583. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 20,223 630 moves 440 moves Quality control Number of inspections $ 85,860 6,400 inspections 4,200 inspections...
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $118,581. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 20,601 610 moves 480 moves Quality control Number of inspections $ 72,080 6,100 inspections 4,500 inspections...
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $134,768. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 17,848 560 moves 360 moves Quality control Number of inspections $ 84,240 6,000 inspections 4,800 inspections...
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $127,554. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Amount Assigned consumed by Indoor consumed by Outdoor Activity Cost Pools Cost Driver to Pool Line Line Materials handling Number of moves $ 22,454 580 moves 510 moves Quality control Number of inspections $ 76,300 6,300 inspections 4,600 inspections...
Carlise Corp, which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor Carlise has total overhead of $124,249 Carlise has identified the following information about its overhead activity cost pools and the two product lines Kost Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Quantity/Amount Assigned Quantity/Amount Consumed by Outdoor to Pool Consumed by Indoor Line Line $ 18,139 59e moves 380 moves...
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $120,650. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Materials handling Number of moves Quality control Number of inspections Machine maintenance Number of machine hours Cost Quantity/Amount Quantity/Amount Assigned Consumed by Indoor Consumed by Outdoor to Pool Line Line $ 19,760 590 moves 450 moves...
Carlise Corp., which manufactures ceiling fans, curently has hvo product lines, the Indoor and the Outdoor. Carlise has total overhead of $138,341 Carlise has identified the following information about its averhead activity cost pools and the two praduct lines: Cost Assigned Quantity Amount Consumed Quantity Amount Consumed Cost Diver Actvity (ost Pools Malerials handlin Quelity control Machine maintenance Number of moves Number of inspections Number ot machine hous to Pool $ 21,721 $80,850 hy Indoor Line 560 oves 5,500 inspections...
er 04 Pre-Built Problems Saved Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor Carlise has total overhead of $138.986. Carlise has identified the following information about its overhead activity cost pools and the two product lines Activity Cost Pools Cost Driver Materials handling Number of moves Quality control Number of inspections Machine maintenance Number of machine hours Cost Assigned to Pool $ 20,176 $81,400 $37,410 Quantity/Amount Quantity/Amount consumed by Indoor Consumed by...
Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $143,955 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assigned to Pool Quantity/Amount Consumed by Basic Quantity/Amount Consumed by Luxury Materials handling Number of moves $ 3,510 22 moves 43 moves Quality control Number of inspections $ 27,145 220 inspections 110...