PA4-2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6] Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $139,400. 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 $ 20,000 575 moves 425 moves Quality control Number of inspections $ 82,500 6,000 inspections 4,000 inspections Machine maintenance Number of machine hours $ 36,900 21,000 machine hours 20,000 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 calculation sand round your final answers to the nearest whole dollar amount.) 2. Calculate the activity proportions for each cost pool in Carlises 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 and final answers to 2 decimal places.) 4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places.) 5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate? ABC System Traditional System rev: 11_07_2013_QC_39351 check my workreferencesebook & resources