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chell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. uppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the ompany has compiled the following detailed information, breaking total overhead into three activity pools: Activity Pools Material handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Quantity or Amount Consumed Quantity or Amount Consumed by by Standard Floor Mat Line Deluxe Floor Mat Line Pool 52 moves 600 inspections 4,160 machine hours $ 1,974.00 42 moves $ 8,442.00 660 inspections $ 14,889.00 2,930 machine hours Required: 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.

chell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. uppose that Schell has conducted further research into its overhead and potential cost drivers. As a result, the ompany has compiled the following detailed information, breaking total overhead into three activity pools: Activity Pools Material handling Quality control Machine maintenance Cost Driver Number of moves Number of inspections Number of machine hours Cost Assigned to Quantity or Amount Consumed Quantity or Amount Consumed by by Standard Floor Mat Line Deluxe Floor Mat Line Pool 52 moves 600 inspections 4,160 machine hours $ 1,974.00 42 moves $ 8,442.00 660 inspections $ 14,889.00 2,930 machine hours Required: 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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 Cost Driver Number of moves Number of inspections Number of machine hours Req 1 Req 2 and 3 Cost Assigned to Quantity or Amount Consumed Quantity or Amount Consumed by Pool by Standard Floor Mat Line Deluxe Floor Mat Line Required: 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. Material Handling Quality Control Machine maintenance $ 1,974.00 $ 8,442.00 $14,889.00 per Material Move per Inspection per Machine Hour < Req 1 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate 42 moves 660 inspections 2,930 machine hours Req 2 and 3> 52 moves 600 inspections 4,160 machine hours
Transcribed Image Text: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 Cost Driver Number of moves Number of inspections Number of machine hours Req 1 Req 2 and 3 Cost Assigned to Quantity or Amount Consumed Quantity or Amount Consumed by Pool by Standard Floor Mat Line Deluxe Floor Mat Line Required: 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. Material Handling Quality Control Machine maintenance $ 1,974.00 $ 8,442.00 $14,889.00 per Material Move per Inspection per Machine Hour < Req 1 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate 42 moves 660 inspections 2,930 machine hours Req 2 and 3> 52 moves 600 inspections 4,160 machine hours
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