Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $141,872.
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 $ 18,672 590 moves 370 moves
Quality control Number of inspections $ 88,550 6,000 inspections 5,500 inspections
Machine maintenance Number of
machine hours $ 34,650 23,000 machine hours 22,000 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.)
2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.)
3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)
4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system.(Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)