Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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: Activity Cost Pools Material handling Quality control Machine maintenance Cost Assigned Cost Driver to Pool Number of moves $ 3,750 Number of inspections $13,860 Number of machine hours $21,450 Quantity/Amount Consumed by Standard Floor Mat Line 30 moves 400 inspections 4,150 machine hours Quantity/Amount Consumed by Deluxe Floor Mat Line 70 moves 600 inspections 3,000 machine hours Required: 1. Calculate the activity rates for each cost pool assuming Schell uses an ABC system. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Activity Rate Material Handling $ 27.00 per Material $ Quality Control Machine maintenance Move 6.20 X per Inspection per Machine 1.70 X Hour $ 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. (Round your intermediate calculations to 2 decimal places.) Answer is complete but not entirely correct. Total Overhead Assigned 10,596 % 3. Determine the amount of overhead Schell will assign to the Deluxe product line. (Round your intermediate calculations to 2 decimal places.) Answer is complete but not entirely correct. Total Overhead Assigned 12,049
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started