Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started