Question

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a total of $39,060 in overhead. It currently uses a traditional cost system with overhead applied to the product on the basis of either labor hours or machine hours. Schell has compiled the following information about possible cost drivers and its two product lines:


Required:
1. Suppose Schell uses a traditional costing system with direct labor hours as the cost driver.
Determine the amount of overhead assigned to each product line.
2. Suppose Schell uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each productline.


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  • CreatedFebruary 27, 2015
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