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HulaHug Corp., which manufactures hula hoops, currently has two product lines, the Roundabout and the Sassafras. HulaHug has total overhead of $132,575. |
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HulaHug has identified the following information about its overhead activity pools and the two product lines. |
| Activity Pools | Cost Driver | Cost Assigned to Pool |
Quantity/Amount Consumed Roundabout Line |
Quantity/Amount Consumed Sassafras Line |
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| Material handling | Number of moves |
$ | 20,655 | 550 moves | 470 moves | ||
| Quality control | Number of inspections | $ | 78,720 | 6,300 inspections | 3,300 inspections | ||
| Machine maintenance |
Number of machine hours |
$ | 33,200 | 16,000 machine hours | 24,000 machine hours | ||
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| Requirement 1: |
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Suppose HulaHug 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. Omit the “$” sign in your response.) |
| Overhead assigned | ||
| Roundabout Model | $ | |
| Sassafras Model | $ | |
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| Total | $ | |
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| Requirement 2: |
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Calculate the activity proportions for each cost pool in HulaHug’s ABC system. (Round your answers to 2 decimal places. Omit the “$” signs in your response.) |
| Activity proportions | ||
| Roundabout Model |
Sassafras Model |
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| Material Handling | ||
| Quality Control | ||
| Maintenance | ||
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| Requirement 3: |
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Calculate the amount of overhead that HulaHug will assign to the Roundabout line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” signs in your response.) |
| Roundabout Model: | ||||
| Material Handling | $ | |||
| Quality Control | $ | |||
| Maintenance | $ | |||
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| Total Overhead Assigned | $ | |||
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| Requirement 4: |
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Determine the amount of overhead HulaHug will assign to the Sassafras line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” signs in your response.) |
| Sassafras Model: | ||||
| Material Handling | $ | |||
| Quality Control | $ | |||
| Maintenance | $ | |||
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| Total Overhead Assigned | $ | |||
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