8 25 onb Exercise 17-17 Activity-based costing LO P3 Glassworks Inc. produces two types of glass...

Transcribed Image Text:

8 25 onb Exercise 17-17 Activity-based costing LO P3 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. eflook Direct materials Direct labor Overhead (300% of direct labor cost) Total cost All Quantity produced Print Average cost per ft. (rounded) ferences Rounded Edge $9,700 6,200 18,600 $34,500 10,500 ft. $3.29 11,800 35,400 Squared Edge $21,000 Total $31,500 18,000 54,000 $ 69,000 $183,500 14,000 ft. 4.93 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 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 $ 2,160 28,840 23,000 $ 54,000 8 25 onb Exercise 17-17 Activity-based costing LO P3 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. eflook Direct materials Direct labor Overhead (300% of direct labor cost) Total cost All Quantity produced Print Average cost per ft. (rounded) ferences Rounded Edge $9,700 6,200 18,600 $34,500 10,500 ft. $3.29 11,800 35,400 Squared Edge $21,000 Total $31,500 18,000 54,000 $ 69,000 $183,500 14,000 ft. 4.93 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 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 $ 2,160 28,840 23,000 $ 54,000