Schell Company manufactures automobile floor mats. It currently has two product

Question

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 Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Pool $ 2,254.00 $ 9,310.00 $10,635.00 Quantity/Amount Consumed by Standard Floor Mat Line 40 moves 640 inspections 2,920 machine hours Quantity/Amount Consumed by Deluxe Floor Mat Line 58 moves 690 inspections 4,170 machine houns 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 Quality Control Machine maintenance per Material Move per Inspection 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

Explanation / Answer

1.

The correct answer is :

Note :

2.The correct answer is :

Note :

3 The correct answer is :

Note :

Activity Rate Material Handling 23.00 Per Material Move Quality Control 7.00 Per Inspection Machine Maintenance 1.50 Per Machine Hour

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