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4 Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the company
4 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. 9 points Direct materials Direct labor Overhead (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge Squared Edge Total $ 9,700 $21,600 $ 31,300 6,200 12,000 18,200 18,600 36,000 54,600 $34,500 $69,600 $104,100 10,700 ft. 14,000 ft. $ 3.22 $ 4.97 eBook COD Hint 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. Print Relorences References Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2,184 29, 160 23, 256 $54,600 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge Squared Edge $6,200 $12,000 400 hours 800 hours 32 times 93 times Total $18,200 1,200 hours 125 times Required: 1 Assinn these three overhead cast noole to each of the two nroducts using ARC 4 Required: 1. Assign these three overhead cost pools to each of the two products using ABC. 9 Overhead Cost Activity Drivers Activity Rate points Direct labor cost % Activity Supervision Depreciation of machinery Assembly line preparation Machine hours Setups eBook Rounded edge Activity rate Activity driver incurred Overhead assigned % Hint Supervision Depreciation of machinery Assembly line preparation Print Squared edge Activity rate Activity driver incurred Overhead assigned References % Components Supervision Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge
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