Matson Company manufactures automobile floor mats. It currently has 2 product lines, the Standard and the Deluxe.

Matson has a total of \($26,040\) in overhead. It currently used a traditional cost system with over- head applied to the product on the basis of either direct labor (DL) hours or machine hours. Matson has compiled the following information about possible cost drivers and its two product lines.

Required:

1. Suppose Matson used a traditional costing system with direct labor hours as the cost driver. Determine the amount of overhead assigned to each product line.

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

Transcribed Image Text:

Matson Company Total 1,000 DL hours 7,150 machine hours Quantity/Amount Consumed by Standard Floor Mat Line 600 DL hours 3,000 machine hours Quantity/Amount Consumed by Deluxe Floor Mat Line 400 DL hours 4,150 machine hours