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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 cost pools: Activity Cost Pools Material handling Quality control Cost Driver Number of moves Number of inspections Number of machine hours Machine maintenance Cost Assigned to Pool $ 1,530.00 58,448.00 517,700.00 Quantity/Amount Consumed by Standard Floor Mat Line 46 moves 580 inspections 2,920 machine hours Quantity/Amount Consumed by Deluxe Floor Rat Line 44 moves 740 inspections 4,160 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. Reg 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.) Material Handling Quality Control Machine maintenance Activity Rate per Material Move per Inspection per Machine Hour Req 2 and 3
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