Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 (300% of direct labor cost) Total cost Quantity produced Average cont per ft. (rounded) Rounded Edge $ 9,600 6,000 18.000 $33,600 10,400 ft. $ 3.23 Squared Edge Total $21,400 $ 31,000 11,900 17,900 35,700 53,700 $69,000 $102,600 14,000 ft. $4.93 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,700 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) Cont Supervision $ 2,145 Depreciation of machinery 28,600 Asembly line preparation 22,072 Total overhead 353,700 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 12 Assembly line preparation Activity rate Activity driver incurred Overhead assigned Squared edge 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 Total overhead $53,700 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 Cont Category Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost (8) Machine hours Setups (number) Usage Rounded Edge Squared Edge $6,000 $11,900 400 hours 600 hours 31 times 94 times Total $17,900 1,000 hours 125 times Activity Rate % Required: 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 Ine preparation Setups Rounded edge Activity rate Supervision % 0 Depreciation of machinery 0 Assembly line preparation 0 Activity driver incurred Overhead assigned

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO 9001 2015 Audit Procedures

Authors: Ray Tricker

4th Edition

1138025895, 978-1138025899

More Books

Students also viewed these Accounting questions

Question

List the different categories of international employees. page 642

Answered: 1 week ago

Question

Explain the legal environments impact on labor relations. page 590

Answered: 1 week ago