Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

00 1.25 points Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current

image text in transcribedimage text in transcribed

00 1.25 points Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company reports the following data. Che Direct materials Direct labor Overhead (300% of direct labor cost) Total cost Quantity produced eBook Average cost per ft. (rounded) Hint Rounded Edge $ 9,500 6,200 18,600 Squared Edge $ 21,800 Total $ 31,300 12,000 36,000 18,200 54,600 $ 34,300 $ 69,800 $104,100 10,700 ft. $ 3.21 $ 14,000 ft. 4.99 Ask Print References Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,600 of overhead costs incurred by the two product lines to see whether cost per foot would change markedly from that reported above. She has collected the following information. Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2,184 29,160 23,256 $ 54,600 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Usage Driver Direct labor cost ($) Machine hours Rounded Edge $6,200 Squared Edge $12,000 Total $18,200 400 hours Setups (number) 32 times 600 hours 93 times 1,000 hours 125 times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

5th edition

1118078764, 978-1118078761

More Books

Students also viewed these Accounting questions

Question

What is the significance of Einsteins equation, E = mc2?

Answered: 1 week ago