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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
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 activity pools: Activity Pools Material handling Quality control Machine maintenance Required: Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 1,456.00 $ 8,710.00 $ 14,868.00 Quantity or Amount Consumed by Standard Floor Mat Line 38 moves 560 inspections 2,940 machine hours 1. Calculate the activity rates for each activity 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. Quantity or Amount Consumed by Deluxe Floor Mat Line 53 moves 780 inspections 4,140 machine hours Req 1 Req 2 and 3 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Material Handling Quality Control Machine maintenance Activity Rate per Material Move per Inspection per Machine Hour
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