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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: Activity Pools Material handling Quality control Machine maintenance Required: Cost Driver Cost Assigned Quantity or Amount Consumed Quantity or Amount Consumed to Pool $ 1,649.00 Number of moves Number of inspections Number of machine hours $ 7,874.00 $ 10,605.00 by Standard Floor Mat Line 44 moves 580 inspections 3,100 machine hours 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. by Deluxe Floor Mat Line 53 moves 690 inspections 3,970 machine hours 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. Material Handling Quality Control Machine maintenance Activity Rate per Material Move per Inspection per Machine Hour
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