Question

luui оспепсотпрапу поттитаските си п HUUI HULS. IL CUICI ILIY TIUJ LV pivuult HICS, Anu LC CUAC. Juppuscu 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 cost pools: Activity Cost Pools Material handling Quality control Machine maintenance Cost Assigned to Cost Driver Pool Number of moves $ 1,536.00 Number of inspections $ 8,556.00 Number of machine hours $16, 238.00 Quantity/Amount Consumed by Standard Floor Mat Line 41 moves 520 inspections 2,990 machine hours Quantity/Amount Consumed by Deluxe Floor Mat Line 55 moves 720 inspections 4,070 machine hours Required: 1. Calculate the activity rates for each cost 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. Reg 1 Req 2 and 3 Calculate the activity rates for each cost pool assuming Schell uses an ABC system. (Round your answers to 2 decimal places.) Activity Rate Material Handling per Material Move Quality Control per Inspection Machine maintenance per Machine Hour

Answer 1

Activity			Total OH	Total Drivers	Activity rate
Material Handling		1536	96	moves	16	per move
Quality control		8556	1240	inspections	6.9	per inspection
Machine Maintenance	16238	7060	MH	2.3	per MH
Overheads allocated to Standard Floor matline
Activity		Rate	Driver used	Overheads allocated
Material Handling	16	41	656
Quality control	6.9	520	3588
Machine Maintenance	2.3	2990	6877
Overheads allocated to Standard Floor Matline	11,121
Overheads allocated to Deluxe Floor Matline
Activity		Rate	Driver used	Overheads allocated
Material Handling	16	55	880
Quality control	6.9	720	4968
Machine Maintenance	2.3	4070	9361
Overheads allocated to Deluxe Floor Matline	15,209