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Hazelnut Corp, manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $175,312 in overhead. The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Quantity/Amount Quantity/Anount Assigned Consumed by Consumed by Activity Cost Pools Cost Driver to Pool Basic Luxury Materials handling Number of moves $ 3,672 26 moves 46 moves Quality control Number of inspections $ 37,240 240 inspections 120 inspections Number of machine Machine naintenance hours $134,400 6,000 nachine hours 3,600 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.) Basic Model Luxury Model Overhead Assigned Overhead Assigned 2. Calculate the activity rates for each cost pool in Hazelnut's ABC system. (Round your answers to the nearest whole dollar) Activity Rates Materials Handling Quality Control Machine Maintenance per Move per Inspection per Machine Hour

3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system (Round your intermediate and final answers to the nearest whole dollar) Basic Model Material 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. (Round your intermediate and final answers to the nearest whole dollar.) Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned 5 0 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System O ABC System

Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabric Case Leather Case Number of labor hours 12,000 8,888 Number of material moves 483 667 Number of setups 28 52 Total estimated overhead costs are $135,000, of which $115,000 is assigned to the materials handling cost pool and $20,000 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the leather case line using ABC. 3. Was the leather case over- or undercosted by the traditional cost system compared to ABC? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) Overhead Assigned Required 2 >