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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: Quantity or Amount Consumed by Standard Floor Mat Line 45 moves 670 inspections 2,910 machine hours Quantity or Amount Consumed by Deluxe Floor Mat Line. 54 moves 580 inspections 4,260 machine hours 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 $ 2,277.00 $ 8,375.00 $ 15,774.00 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. 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. Activity Rate Material Handling $ 23.00 per Material Move Quality Control $ 6.70 per Inspection Machine maintenance $ 2.20 per Machine Hour
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