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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 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 Quantity/Amount Consumed by Consumed by Standard Floor Mat Line Deluxe Floor Mat Line 30 moves 70 moves 400 inspections 600 inspections 4,150 machine hours 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.) Activity Rate Material Handling per Material Move Quality Control per Inspection Machine maintenance per Machine 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.) Total Overhead Assigned 3. Determine the amount of overhead Schell will assign to the Deluxe product line. (Round your intermediate calculations to 2 decimal places.) Total Overhead Assigned
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