Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Direct materials Direct labor Overhead (300k of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Hounded Edge $ 9,600 6,100 18,309 $ 34,000 10,500 Ft 53.24 Squared Edge $ 21,600 11,900 352 $ 69,zee 14,200 ft. 5 4.89 Total $ 31,200 18,69 54,00 $183,299 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 Dverhead Cost Category Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost 52.168 28.04 23 cee $ 54,000 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 (5) Machine hours Setups (number) Rounded Edge $6,100 400 hours J2 times Squared Edge $11,90 600 hours 95 times Tatal $18,000 1. eee hours 127 times Activity Rate Required: 1. Assign these three overhead cost pools to each of the two products using ABC Activity Overhead Cost Activity Drivers Supervision Direct labor cost Depreciation of machinery Machine hours Assembly line preparation Setups Rounded edge Activity rate Supervision Depreciation of machinery Assembly line preparation Activity driver incurred Overhead assigned
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