Matson Company manufactures automobile floor mats. It currently has 2 product lines, the Standard and the Deluxe. Suppose that Matson 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

Matson Company manufactures automobile floor mats. It currently has 2 product lines, the Standard and the Deluxe. Suppose that Matson 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 Pools	Cost Driver	Cost Assigned to Pool				Quantity/Amount Consumed by Standard Floor Mat Line	Quantity/Amount Consumed by Deluxe Floor Mat Line
Material Handling	# moves		$	2,376		46 moves	62 moves
Quality Control	# inspections		$	9,100		700 inspections	700 inspections
Machine Maintenance	# machine hrs		$	14,240		2,990 machine hours	4,130 machine hours
Requirement 1:
Calculate the activity rates for each cost pool assuming Matson uses an ABC system. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

 

	Activity rate
Material Handling	$ 22	per material move
Quality Control	$ 6.5	per inspection
Maintenance	$ 2	per machine hour
Explanation: Material Handling:  $2,376 / 108 = $22/move Quality Control: $9,100 / 1,400 = $6.5/inspection Maintenance:  $14,240 / 7,120 = $2/machine hr. Requirement 2:
Calculate the amount of overhead that Matson will assign to the standard floor mat line. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

 

Total overhead assigned

$ 11,542

 Explanation:

	Activity Rate	Activity Requirement (Standard Mat)	Total Cost Assigned
Materials Hand	$22 per move	46 moves		$	1,012
Quality Control	$6.5 per inspection	700 inspections			4,550
Machine Maintenance	$2 per machine hour	2,990 machine hours			5,980
Total Cost Assigned				$	11,542

Requirement 3:

Determine the amount of overhead Matson will assign to the deluxe product line. (Round your intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

 

Total overhead assigned

$ 14,174

Explanation:

	Activity Rate	Activity Requirement (Deluxe Mat)	Total Cost Assigned
Materials Hand	$22 per move	62 moves		$	1,364
Quality Control	$6.5 per inspection	700 inspections			4,550
Machine Maintenance	$2 per machine hour	4,130 machine hours			8,260
Total Cost Assigned				$	14,174