Carlise Corp Which Manufactures Ceiling Fans Currently Has Two Prod ✓ Solved

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of 8,360. 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 $ 21, moves 470 moves Quality control Number of inspections $ 76,,500 inspections 5,000 inspections Machine maintenance Number of machine hours $ 30,,000 machine hours 8,000 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 Outdoor Model Total $ 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 Materials Handling % % Per Move Quality Control % % Per Inspection Machine maintenance % % Per Machine Hour 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Indoor Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 4.

Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Outdoor Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? Traditional System ABC System Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of 8,360.

Carlise has identified the following information about its overhead activity cost pools and the two produc t 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 $ 21, moves 470 moves Quality control Number of inspections $ 76,,500 inspections 5,000 inspections Machine maintenance Number of machine hours $ 30,,000 machine hours 8,000 machine hours Required: 1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. De termine 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 Outdoor Model Total $ 2.

Calculate the activ i ty proportions for each cost pool in Carlise's ABC system . (Round your answers to 2 decimal places.) Activity Proportions Indoor Line Outdoor Materials Handling % % Per Move Quality Cont rol % % Per Inspection Machine maintenance % % Per Machine Hour 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your int ermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Indoor Model Materials Handling Quality Control Machine maintenance Total O ver head Assigned $ Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor.

Carlise has total overhead of 8,360. 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 $ 21, moves 470 moves Quality control Number of inspections $ 76,,500 inspections 5,000 inspections Machine maintenance Number of machine hours $ 30,,000 machine hours 8,000 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 Outdoor Model Total $ 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 Materials Handling % % Per Move Quality Control % % Per Inspection Machine maintenance % % Per Machine Hour 3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.) Indoor Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $

Paper for above instructions

Title: Overhead Allocation Methods and Analysis at Carlise Corp.
Introduction
Carlise Corp. is a manufacturer of ceiling fans that currently operates two product lines, the Indoor and the Outdoor models. The total overhead costs are 8,360, and various activity cost pools have been identified to allocate these costs appropriately. This report aims to analyze overhead allocation using both traditional costing and Activity-Based Costing (ABC), ultimately determining which method provides a more accurate reflection of costs.
1. Overhead Assigned Using a Traditional Costing System
In a traditional costing system, overhead is typically allocated based on a single cost driver—in this case, machine hours. Overall, the total machine hours consumed by both product lines need to be calculated first.
Given Information:
- Total Overhead: 8,360
- Machine hours for the Indoor model: 8,000 hours
- Machine hours for the Outdoor model: 30,000 hours
Total Machine Hours:
The overall machine hours used in both product lines:
Total Machine Hours = Indoor Machine Hours + Outdoor Machine Hours
Total Machine Hours = 8,000 + 30,000
Total Machine Hours = 38,000 hours
Overhead Rate Calculation:
Overhead Rate = Total Overhead / Total Machine Hours
Overhead Rate = 8,360 / 38,000 hours
Overhead Rate =