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Category > Management Posted 19 Jan 2018 My Price 10.00

Carlise Corp

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $131,468.

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
  $ 19,688   580 moves 470 moves
Quality control Number of inspections   $ 75,260   6,300 inspections 4,300 inspections
Machine maintenance Number of
machine hours
  $ 36,520   25,000 machine hours 19,000 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.(Round your intermediate calculations to 2 decimal places 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.(Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.)

   
   

 

1)                  
Total Overhead 131,468.00                
Total Machine hrs(25,000+19,000) 44,000.00                
Overhead Rate(131,468/44,000) 2.99                
Overhead Assigned to Indoor Line(25000*2.99) 74,697.73                
Overhead Assigned to Outdoor Line(19000*2.99) 56,770.27                
2),3,4                  
Activity Cost Pools Cost driver Cost Assigned to pool Quantity/Amount consumed by Indoor Line Quantity/Amount consumed by Outdoor Line Total Drivers Cost per Activity driver Overhead cost for indoor Line base on ABC Overhead cost for Outdoor Line base on ABC  
Materials Handling No of Moves 19,688.00 580 Moves 470 Moves 1,050.00 18.75 10,875.28 8,812.72  
Quality control No of Inspections 75,260.00 6,300 Inspections 4,300 Inspections 10,600.00 7.10 44,730.00 30,530.00  
Machine Maintenance No of Machine hours 36,520.00 25,000 Machine hrs 19,000 Machine hrs 44,000.00 0.83 20,750.00 15,770.00  
    131,468.00         76,355.28 55,112.72  
           

 

Answers

(5)
Status NEW Posted 19 Jan 2018 11:01 PM My Price 10.00

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