what is comect and incorrect for the work you have completed so fac shows he wor

Question

what is comect and incorrect for the work you have completed so fac shows he work you harve done so far correct scomect, you may not have completed everyting 064 points Hazelnut Corp. manufactures lawn ormaments. it currently has two The company product lines, the basic and the ury Hazenut has a totalof $187 885 in overheod has identied the following information about is overhead activity cost pools and the two product lines Materals handling Quality con s30450 Required 1. Suppose Hazenut used a traditional calculations and round your final answers to the nearest whole doilar costing system with machine hours as the oost diver Detemine the amount of oveth assigned to each product line (Do mot round intermediat r amount) O Answer is complete but not entirely correct. 8 03,040 o

Explanation / Answer

Req 1. Pre-determined Oh rate per MH: Estimated OH 187685 Divide: Estimated MH 10200 OH rate per MH 18.4 per MH OH assigned: Basicc (5600 MH @18.40) 103040 Luxury (400 MH @18.40) 84640 Req 2: Activity rate STATEMENT SHOWING ACTIVITY RATE OF ACTIVITY POOL Activity Total Expected Activity ACTIVITY COST POOL Measures Overheads Activity Rate Material Handling Moves 4,235 77 55 Quality Control Inspections 30,450 350 87 Machine Maintenance MH 153,000 10,200 15 Req 3: Activity cost assigned to Basic: Material Handling (13 moves@ 55): 715 Quality Control (250 inspections @87) 21750 Machine maintenance (5600 MH @15) 84000 Total OH 106465 Req 4: Activity cost assigned to Luxury: Material Handling (64 moves@ 55): 3520 Quality Control (100 inspections @87) 8700 Machine maintenance (4600 MH @15) 69000 Total OH 81220 Req 5: ABC system

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