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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the...

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Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $147,852 in overhead The company has identified the following information about its overhead activity cost pools and the two product lines: Cost Assigned Activity Cost Pools Materials handlingNumber of moves Quantity/Amount Consumed by Basic 21 moves QuantitylAmount Consumed by Luxury 55 moves Cost Driver Number of Number of machine to Pool $ $ 29,160 220 inspections $115,500 3,192 Quality control inspections Machine maintenance 140 inspections hours 5,900 machine hours 4,600 machine hours 3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system. Basic Model Materials Handling Quality Control Machine Maintenance Total Overhead Assigned $ 4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system. Luxury Model Materials Handling Quality Control Machine maintenance Total Overhead Assigned $ 0 5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate? Traditional System ABC System

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