E4-10 Assigning Costs Using Activity Rates [LO 4-4]

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Suppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the company has compiled the following detailed information, breaking total overhead into three cost pools:

Activity Cost Pools	Cost Driver	Cost Assigned to Pool				Quantity/Amount Consumed by Standard Floor Mat Line	Quantity/Amount Consumed by Deluxe Floor Mat Line
Material handling	Number of moves		$	3,750		30 moves	70 moves
Quality control	Number of inspections		$	13,860		400 inspections	600 inspections
Machine maintenance	Number of machine hours		$	21,450		4,150 machine hours	3,000 machine hours

Required :

1.

Calculate the activity rates for each cost pool assuming Schell uses an ABC system. (Round your answers to 2 decimal places.)

	Activity Rate
Material Handling		per Material Move
Quality Control		per Inspection
Maintenance		per Machine Hour

2.

Calculate the amount of overhead that Schell will assign to the Standard floor mat line. (Round your intermediate calculations to 2 decimal places.)

Total Overhead Assigned

__________________?

3.

Determine the amount of overhead Schell will assign to the Deluxe product line. (Round your intermediate calculations to 2 decimal places.)

Total Overhead Assigned

?