? ??? os Bookmark 079 poins Carise Corp, which manuflactures cellng fans, ourren

Question

? ??? os Bookmark 079 poins Carise Corp, which manuflactures cellng fans, ourrenty has two product ines, the Indoor and the Ouidoor Carise has total overhead of $130,470 Carise has identfied the tollowing information about its overhead adtivity cost pools and the bwo product lines by Ouidoor 100 inspections Cost Driver Quaity cont 3 0.90015,000 machine hours 21,000 machine hours assigned to each product ine. (Do not round 1. Suppose Carlise used a tradtional costing system with machine hours as the cost driver Determine the amount of overhead intermediate calculations and round your final answers to the nearest whole dollar amount) 2Calouiate the acivily proportions for each oost pool in Carlise's ABC sysem (Round your answers to 2 decimal places) 8 3 90

Explanation / Answer

8) 1' MH QC MM Overhead assigned Indoor Model 19950*550/1050=10450 79560*6100/10200=47580 30960*15000/36000=12900 70930 Outdoor Model 19950*500/1050=9500 79560*4100/10200=31980 30960*21000/36000=18060 59540 Total 130470 2' Activity proportions: Activity Proportions Indoor line Outdoor line MH 52.38% 47.62% Per move QC 59.80% 40.20% Per inspection MM 41.67% 58.33% Per MH 3. Amount of overhead to Indoor line as per ABC system: Indoor Model MH 10450 QC 47580 MM 12900 Total O/H assigned 70930 4. Amount of overhead to Outdoor line as per ABC system: Indoor Model MH 9500 QC 31980 MM 18060 Total O/H assigned 59540 5. Results as per ABC system is more accurate than traditional system.

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