Schell Company makes car mats.It currently has two product lines, Standard and Deluxe.Assume that Schell has done
Question:
Schell Company makes car mats. It currently has two product lines, Standard and Deluxe. Assume that Schell has done more research on its potential cost and overhead cost drivers. As a result, the company compiled the following detailed information, dividing total overhead into three cost groups: |
Activity Cost Pools | cost factor | Pool | Quantity/Quantity | Quantity/Quantity | |||
material handling | number of moves | ps | 2,300.00 | 50 moves | 50 moves | ||
QA | Number of inspections | ps | 8,763.00 | 570 inspections | 700 inspections | ||
machine maintenance | Number of machine hours | ps | 14,360.00 | 3,090 machine hours | 4,090 machine hours | ||
Required : | |||||||||||||
1. | Calculate the activity rates for each cost pool assuming that Schell uses an ABC system. (Round your answers to 2 decimal places.) | ||||||||||||
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2. | Calculate the amount of overhead that Schell will allocate to the standard rug line. (Round your intermediate calculations to 2 decimal places.) | ||||||||||||
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3. | Determine the amount of overhead that Schell will allocate to the Deluxe product line. (Round your intermediate calculations to 2 decimal places.) |
Total Allocated Overhead |
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips