Question

E4-10 Assigning Costs Using Activity Rates [LO 4-4]

Schell Company manufactures automobile floor mats. It currentlyhas two product lines, the Standard and the Deluxe. Suppose thatSchell has conducted further research into its overhead andpotential cost drivers. As a result, the company has compiled thefollowing detailed information, breaking total overhead into threecost pools:

Activity CostPools	Cost Driver	Cost Assigned to Pool				Quantity/Amount Consumed by Standard Floor Mat Line	Quantity/Amount Consumed by Deluxe Floor Mat Line
Materialhandling	Number of moves		$	3,750		30 moves	70 moves
Quality control	Number of inspections		$	13,860		400inspections	600inspections
Machinemaintenance	Number of machine hours		$	21,450		4,150 machinehours	3,000 machinehours

Required:

1.

Calculate the activity rates foreach cost pool assuming Schell uses an ABC system. (Roundyour answers to 2 decimal places.)

	Activity Rate
MaterialHandling		perMaterial Move
QualityControl		perInspection
Maintenance		perMachine Hour

2.

Calculate the amount of overhead that Schell will assign to theStandard floor mat line. (Round your intermediatecalculations to 2 decimal places.)

TotalOverhead Assigned

__________________?

3.

Determine the amount of overhead Schell will assign to theDeluxe product line. (Round your intermediate calculationsto 2 decimal places.)

TotalOverhead Assigned

?