Question

Schell Company manufactures automobile floor mats. It currently has two product lines, the Standard and the Deluxe. Schell has a total of $26,740 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 1,060 labor hours 7,060 machine hours Quantity/Amount Consumed by Standard Floor Mat Line 700 labor hours 2,920 machine hours Quantity/Amount Consumed by Deluxe Floor Mat Line 360 labor hours 4,140 machine hours 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 product line. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (Round activity rates to 4 decimal places and final answers to 2 decimal places.) Overhead Assigned Standard Floor Mat Deluxe Floor Mat Required Required 2 >

Answer 1

А B 1 1) 2 Total overhead $ 26,740 3 Total direct labor hours 1,060 4 Overhead rate $ 25.2264 5 6 Overhead Assigned 7 Standard Floor Mat $ $ 17,658.48 8 Deluxe Floor Mat $ 9,081.50 9 10 2) 11 Total overhead $ 26,740 12 Total machine hours 7,060 13 Overhead rate $ 3.7875 14 15 Overhead Assigned 16 Standard Floor Mat $ 11,059.50 17 Deluxe Floor Mat $ 15,680.25

A B 1 1) 2 Total overhead 26740 3 Total direct labor hours 1060 4 Overhead rate =+B2/B3 5 6 Overhead Assigned 7 Standard Floor Mat =25.2264*700 * 8 Deluxe Floor Mat =25.2264*360 9 10 2) 11 Total overhead 26740 12 Total machine hours 7060 13 Overhead rate =+B11/B12 14 15 Overhead Assigned 16 Standard Floor Mat =2920*3.7875 17 Deluxe Floor Mat -4140*3.7875