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Please help with question 1. Schell Company manufactures automobile floor mats it currently has two product lines, the Standard and the Deluxe Schell has a
Please help with question 1.
Schell Company manufactures automobile floor mats it currently has two product lines, the Standard and the Deluxe Schell has a total of $26,340 in overhead. It currently uses a traditional cost system with overhead applied to the product on the basis of either labor hours or machine hours. Schell has compiled the following information about possible cost drivers and its two product lines: Quantily/Amount Consumed by Standard Floor Mat Line 690 labor hours 2,980 machine hours Quantity Amount Consumed by Schell Company Total Deluxe Floor Mat Lir 1,130 labor hours 440 labor hours 4.090 machine hours 7,070 machine hours Required 1. Suppose Schell uses a traditional costing system with direct labor hours as the cost driver. Determine the amount of overhead assigned to each product line. (Round activity rates answers to 2 decimal places and final answers to 2 decimal places.) Answer is complete but not entirely correct. Assig Standard Floor Mat 16,083.72 Deluxe Floor Mat 10,256.28Step by Step Solution
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