Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $187,754 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Assigneduantity/Amount ConsumedQuantity/Amount Consumed to Pool $ 3,894 $ 36,860 $147,000 Cost by Basic 24 moves 160 inspections 4,800 machine hours by Luxury 42 moves 220 inspections 5.000 machine hours Activity Cost Pools Materials handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of 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.) Overhead Assigned Basic Model Luxury Model Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. Activity Rates Materials Handling per Move per Inspection per Machine Hour Quality Control Machine Maintenance 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. 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. 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 OABC System

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