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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
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: Quantity/Amount Consumed by Quantity/Amount Consumed by Cost Assigned to Activity Cost Pools Material handling Quality control Machine maintenance Cost Driver Number of moves Standard Floor Mat Line Deluxe Floor Mat Line ool $ 2,639.00 $ 7,812.00 Number of machine hours $15,730.00 49 moves 42 moves Number of inspections 590 inspections 3,050 machine hours 670 inspections 4,100 machine hours Required: 1. Calculate the activity rates for each cost pool assuming Schell uses an ABC system. 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. 3. Determine the amount of overhead Schell will assign to the Deluxe product line. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Calculate the activity rates for each cost pool assuming Schell uses an ABC system. (Round your answers to 2 decimal places.)
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