Carlse Corp., which manufactures celiling fans, currently has two produc: lines,
ID: 2334241 • Letter: C
Question
Carlse Corp., which manufactures celiling fans, currently has two produc: lines, the Indoor and the Outdoor. Carlise has total overhead of $128,180 Carlise has idenlified the fallowing information abaut ils overhead acivity cost pools and the two product ines: Cost Activity Coet Pools Materials harding Quaity control Machinc maintenance Cost Driver Number af maves Number of inspecions Number af machine hours to Pcol S 19,900 S 79,040 by Indoor Line by Ouldoor Line 5,500 inspetions 4,900 inspections 18,000 machine hours S 29,24 6,000 machine hours Required: 1. Suppose Carlise used a traditional costing system with mechine hours as the cost driver. Determine the amount of averhead assigned to each product line. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) Overhead Assig Indoor Model Outdoor Mndel Tolal 2. Calculate the aclivity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.) Indoor Line Outdoor Line Materials Handling Quality Control Machine maintenance % % % |per Move | per Inspection |per Machine Hour 3. Calculate the amount of overheed that Carise will assign to the Indcor 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.) Mabarials Handling Quality Control Machine maintenance Tolal Overhead Assigned SExplanation / Answer
1) predetermined overhead rate = 128,180/(16,000+18000) 3.77 per machine hour overhead assigned = overhead rate * machine hrs used indoor Model = 3.77*16000 60320 outdoor model = 3.77*18000 67860 overhead assigned Indoor Model 60320 outdoor model 67860 total 128180 indoor outdoor 2) line lines Materials handling 55.00% 45.00% per move (read it as 550 and 450) Quality control 52.88% 47.12% per inspection Machine maintenance 47.06% 52.94% per machine hour 3) Indoor model Materials handling 10945 Quality control 41800 Machine maintenance 13760 total overhead assigned 66505 4) outdoor model Materials handling 8955 Quality control 37240 Machine maintenance 15480 total overhead assigned 61675 5) ABC system