Question: Schell has a total of $ 3 9 , 0 6 0 in overhead. It currently uses a traditional cost system with overhead applied to
Schell has a total of $ 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:
Schell Company Total Quantity or Amount Consumed by Standard Floor Mat Line Quantity or Amount Consumed by Deluxe Floor Mat Line
labor hours labor hours labor hours
machine hours machine hours machine hours
Required:
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.
Suppose Schell uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line.
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