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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:Activity PoolsCost DriverCost Assigned to PoolQuantity or Amount Consumed by Standard Floor Mat LineQuantity or Amount Consumed by Deluxe Floor Mat LineMaterial handlingNumber of moves$ movesmovesQuality controlNumber of inspections$ inspectionsinspectionsMachine maintenanceNumber of machine hours$ machine hoursmachine hoursRequired: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.
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