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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 activity pools:
tableActivity Pools.,Cost Driver,tableCost Assignedto PooltableQuantity or AmountConsumed by StandardFloor Mat LinetableQuantity or Amount Consumedby Deluxe Floor Mat LineMaterial handling,Nufiber of moves,$ moves, movesQuality control,Number of inspections,$ inspections, inspectionsMachine maintenance,Number of machine hours,$ machine hours, machine hours
Required:
Calculate the activity rates for each activity pool assuming Schell uses an ABC system.
Calculate the amount of overhead that Schell will assign to the Standard floor mat line.
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
Req and
Calculate the activity rates for each activity pool assuming Schell uses an ABC system.
Note: Round your answers to decimal places.
tableActivity Rate,Material Handling,,per Material MoveQuality Control,,per InspectionMachine maintenance,,per Machine Hour
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