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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 Req 1 Cost Driver Number of moves Number of inspections Number of 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. Req 2 and 3 Complete this question by entering your answers in the tabs below. Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line 31 moves 680 inspections 3,070 machine hours Material Handling Quality Control Machine maintenance $ 2,046.00 $ 9,310.00 $ 13,642.00 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate per Material Move per Inspection per Machine Hour Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 machine hours

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 Req 1 Cost Driver Number of moves Number of inspections Number of 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. Req 2 and 3 Complete this question by entering your answers in the tabs below. Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line 31 moves 680 inspections 3,070 machine hours Material Handling Quality Control Machine maintenance $ 2,046.00 $ 9,310.00 $ 13,642.00 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate per Material Move per Inspection per Machine Hour Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 machine hours

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Req 1 Cost Driver Number of moves Number of inspections Number of 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. Req 2 and 3 Material Handling Quality Control Machine maintenance Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line. $2,046.00 31 moves $9,310.00 $ 13,642.00 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate per Material Move per Inspection per Machine Hour < Req 1 680 inspections 3,070 machine hours Req 2 and 3 > Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 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 Req 1 Cost Driver Number of moves Number of inspections Number of 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. Req 2 and 3 Material Handling Quality Control Machine maintenance Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line. $2,046.00 31 moves $9,310.00 $ 13,642.00 Calculate the activity rates for each activity pool assuming Schell uses an ABC system. Note: Round your answers to 2 decimal places. Activity Rate per Material Move per Inspection per Machine Hour < Req 1 680 inspections 3,070 machine hours Req 2 and 3 > Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 machine hours
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: 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. Req 1 Req 2 and 3 Cost Driver Number of moves Number of inspections Number of machine hours Complete this question by entering your answers in the tabs below. 2. Standard floor mat line 3. Deluxe product line Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line 31 moves Total Overhead Assigned $ 2,046.00 $ 9,310.00 $ 13,642.00 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. Note: Round your intermediate calculations to 2 decimal places. 3. Determine the amount of overhead Schell will assign to the Deluxe product line. Note: Round your intermediate calculations to 2 decimal places. < Req 1 680 inspections 3,070 machine hours. Req 2 and 3> Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 machine hours. Show less
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. 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. Req 1 Req 2 and 3 Cost Driver Number of moves Number of inspections Number of machine hours Complete this question by entering your answers in the tabs below. 2. Standard floor mat line 3. Deluxe product line Cost Assigned Quantity or Amount Consumed to Pool by Standard Floor Mat Line 31 moves Total Overhead Assigned $ 2,046.00 $ 9,310.00 $ 13,642.00 2. Calculate the amount of overhead that Schell will assign to the Standard floor mat line. Note: Round your intermediate calculations to 2 decimal places. 3. Determine the amount of overhead Schell will assign to the Deluxe product line. Note: Round your intermediate calculations to 2 decimal places. < Req 1 680 inspections 3,070 machine hours. Req 2 and 3> Quantity or Amount Consumed by Deluxe Floor Mat Line 62 moves 650 inspections 4,110 machine hours. Show less
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