Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has to overhead of $132,720. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Number of moves Activity Cost Pools Cost Driver Materials handling Quality control Machine maintenance Number of machine hours $39,840 29,000 machine hours 19,000 machine hours Number of inspections $71,760 Cost Assigned to Pool $21, 120 Indoor Model Outdoor Model Total Overhead Assigned 600 moves 5,800 inspections 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.) 500 moves 4,600 inspections
Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has to overhead of $132,720. Carlise has identified the following information about its overhead activity cost pools and the two product lines: Quantity/Amount Consumed by Indoor Line Quantity/Amount Consumed by Outdoor Line Number of moves Activity Cost Pools Cost Driver Materials handling Quality control Machine maintenance Number of machine hours $39,840 29,000 machine hours 19,000 machine hours Number of inspections $71,760 Cost Assigned to Pool $21, 120 Indoor Model Outdoor Model Total Overhead Assigned 600 moves 5,800 inspections 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.) 500 moves 4,600 inspections
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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