Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has tooverhead of $132,720.Carlise has identified the following information about its overhead activity cost pools and the two product lines:Quantity/AmountConsumed by IndoorLineQuantity/AmountConsumed by OutdoorLineActivity Cost Pools Cost DriverMaterials handlingNumber of movesQuality controlNumber of inspectionsMachine maintenance Number of machine hoursRequired:1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount ofoverhead assigned to each product line. (Do not round intermediate calculations and round your final answers to thenearest whole dollar amount.)Indoor ModelOutdoor ModelTotalCostAssignedto Pool$21, 120$71,7604,600 inspections$39,840 29,000 machine hours 19,000 machine hours600 moves500 moves5,800 inspectionsOverhead Assigned

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has to overhead of $132,720. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Number of moves Activity Cost Pools Cost Driver Materials handling Quality control Machine maintenance Number of machine hours $39,840 29,000 machine hours 19,000 machine hours Number of inspections $71,760 Cost Assigned to Pool $21, 120 Indoor Model Outdoor Model Total Overhead Assigned 600 moves 5,800 inspections 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.) 500 moves 4,600 inspections

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has to overhead of $132,720. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Number of moves Activity Cost Pools Cost Driver Materials handling Quality control Machine maintenance Number of machine hours $39,840 29,000 machine hours 19,000 machine hours Number of inspections $71,760 Cost Assigned to Pool $21, 120 Indoor Model Outdoor Model Total Overhead Assigned 600 moves 5,800 inspections 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.) 500 moves 4,600 inspections

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...

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Rex Industries has identified three different activities as cost drivers: machine setups, machine hours, and inspections. The overhead and estimated usage are: Compute the overhead rate for each activity.
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Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
Carlise has identified the following information about its overhead activity pools and the two product lines: Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool Indoor Model $ 20,910 $ 85,120 $ 34,790 Materials Handling Quality Control Machine Maintenance Total Overhead Assigned Quantity or Amount Consumed by Quantity or Amount Consumed by Indoor Line Outdoor Line 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. Complete this question by entering your answers in the tabs below. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC…
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Carlise has identified the following information about its overhead activity pools and the two product lines: Cost Assigned to Pool $ 20,910 $ 85,120 $ 34,790 Activity Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Quantity or Amount Consumed by Quantity or Amount Consumed by Indoor Line Outdoor Line Complete this question by entering your answers in the tabs below. Indoor Model Outdoor Model Total 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. 2. Calculate the activity proportions for each activity pool in Carlise's ABC system. 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. 5. Compare the results for a traditional system…
Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three activity pools: Activity Pools Material handling Quality control Machine maintenance Req 1 Cost Driver Number of moves Number of inspections Number of machine hours Req 2 and 3 Required: 1. Calculate the activity rates for each activity pool assuming Schell uses an ABC system. 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. 3. Determine the amount of overhead Schell will assign to the Deluxe product line. Complete this question by entering your answers in the tabs below. Material Handling Quality Control Machine maintenance Cost Assigned to Pool Activity Rate $ 2,068.00 $ 8,640.00 $ 14,120.00 Calculate the activity rates for…
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Forner, Incorporated, manufactures and sells two products: Product 21 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Activity Cost Pools Labor-related Machine setups Order size Multiple Choice Activity Measures DLHS setups MHS $7129 per MH Estimated Expected Activity Overhead Cost Product 21 Product 28 $ 109,600 51,690 808,470 $ 969,760 4,800 700 2,800 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: 2,400 300 3,500 Total 7,200 1,000 6,300
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $128,366.Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assignedto Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 18,336 650 moves 310 moves Quality control Number of inspections $ 84,750 6,300 inspections 5,000 inspections Machine maintenance Number of machine hours $ 25,280 26,000 machine hours 6,000 machine hours 2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Activity Proportions Indoor Line Outdoor Line Materials Handling % % per Move Quality Control % % per Inspection Machine maintenance % % per Machine…
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $128,366.Carlise has identified the following information about its overhead activity cost pools and the two product lines: Activity Cost Pools Cost Driver Cost Assignedto Pool Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Materials handling Number of moves $ 18,336 650 moves 310 moves Quality control Number of inspections $ 84,750 6,300 inspections 5,000 inspections Machine maintenance Number of machine hours $ 25,280 26,000 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…