Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. carlise has identified the following information a

Carlise has identified the following information about its overhead activity pools and the two product...

80.2K

Verified Solution

Question

Accounting

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

Activity Pools Cost Driver Cost Assigned to Pool Quantity or Amount Consumed by Indoor Line Quantity or Amount Consumed by Outdoor Line
Materials handling Number of moves $ 20,090 610 moves 370 moves
Quality control Number of inspections $ 75,920 6,200 inspections 4,200 inspections
Machine maintenance Number of machine hours $ 28,700 27,000 machine hours 14,000 machine hours

Required:

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

Calculate the activity proportions for each activity pool in Carlises ABC system.

Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system.

Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system.

  1. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?
Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Consider the design of a wastewater treatment plant (WWTP) for a community with average daily and peak...

Mechanical Engineering
Q

Structure and Function of Living Systems:Question 3Which of the following is a function of some...

Biology
Q

Find the area of the trapezoid shown below 8 7 1 19 5 M 3...

Calculus
Q

q x x 4x 5 2 3

Calculus
Q

Si el inventario final el 31 de diciembre de 2019 es exagerado, entonces _______. ...

Accounting
Q

Shelcal Inc. provides the following data for the year 2015: Sales Revenue $400,000 Sales Returns...

Accounting
Q

You borrow $80,000 at 5.00% per year and will pay off the loan in equal...

Accounting
Q

How does gross profit ratio, Operating Margin Ratio, Net Profit Margin determine a company's profitability?

Accounting
Q

nusin 71 nusin 71

Accounting
Q

Required information [The following information applies to the questions displayed below.] Eva received $60,000 in...

Accounting
Q

Chelsea currently owes $9,000 to a friend who is charging her interest of 2.50% p.m....

Finance
Q

Asset A has a beta of 1.20. The risk-free rate of return is 6 percent,...

Finance