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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 (3001 of direct labor coat) Total cost Quantity produced Average cont per ft. (rounded) Rounded Edge $ 9,600 6,200 18,600 $34,400 10,400 ft. $ 3.31 Squared Edge Total $21,500 $ 31,100 11,800 18,000 35,400 54.000 $68,700 5103,100 14,200 ft. 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 Ativity cont pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cont $ 2,160 28, 23,000 $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.) overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost (5) Machine hours Setups (number) Rounded Edge $6,200 300 hours Squared Edge $21,800 600 hours Total $18,000 900 hours 125 times uz Soved Help Save & WILLE TUE WENGU UPUTE UU ITU LULU UCHU Information overhead cost category Activity cont Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2,160 28,840 23,000 $ 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 Cont Category (activity cost Pool). Driver Rounded Edge Squared Edge Total Supervision Direct labor cost (5) $5,200 $11,800 $18,000 Depreciation of machinery Machine hours 300 hours 600 hours 900 hours Assembly line preparation Setups (number) 31 times 94 times 125 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Supervision $ 2,160 S 18.000 Direct labor cost Depreciation of machinery 28,840 900 Machine hours Assembly line preparation 23,000 125 Setup Activity Rate %% Activity rate Overhead assigned Activity driver incurred $ 0,200 50 Rounded edge Supervision Depreciation of machinery Assembly fine preparation 0 300 0 31 Help Required: Analon these three overhead cost pools to each of the two products using ABC Activity Overhead Cost Activity Drivers Supervision $ 2,160 $ 18,000 Direct labor cost Depreciation of machinery 28,840 900 Machine hours Assembly line preparation 23,000 125 Setups Activity Rate % Rounded edge Activity rate Overhead assigned % 0 Supervision Depreciation of machinery Assembly line preparation Activity driver incurred $ 6,200 300 0 0 31 Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly line preparation % 0 $ 11,800 600 0 0 94 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge
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