Suppose larkspur used a traditional costing system with


Question - Larkspur Corp. manufactures bird feeders. It currently has two product lines, the standard and the deluxe. Larkspur has a total of $137,250 in overhead.

The company has identified the following information about its overhead activity pools and the two product lines:

Activity Pools

Cost Driver

Cost
Assigned
to Pool

Quantity Consumed
by
Standard

Quantity Consumed
by
Deluxe

Material handling

Number of
moves

$3,500

20 moves

50 moves

Quality control

Number of inspections

$33,750

250 inspections

125 inspections

Machine
maintenance

Number of
machine hrs

$100,000

5,000 machine hours

5,000 machine hours

Suppose Larkspur used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.

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Accounting Basics: Suppose larkspur used a traditional costing system with
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