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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
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.
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. Overhead Cost Category (Activity Cost Cost Pool) $ 2,184 Supervision Depreciation of machinery Assembly line preparation 29,160 23,256 Total overhead $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 Total Overhead Cost Categoy (Activity Cost Pool) Supervision Driver Direct labor cost Rounded Edge Squared Eage $6,200 $12,000 $18,200 Depreciation of Machine hours 300 hours 700 hours 1,000 hours machinery Assembly line Setups (number) 31 times 94 times 125 times preparation 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. Overhead Cost Category (Activity Cost Cost Pool) $ 2,184 Supervision Depreciation of machinery Assembly line preparation 29,160 23,256 Total overhead $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 Total Overhead Cost Categoy (Activity Cost Pool) Supervision Driver Direct labor cost Rounded Edge Squared Eage $6,200 $12,000 $18,200 Depreciation of Machine hours 300 hours 700 hours 1,000 hours machinery Assembly line Setups (number) 31 times 94 times 125 times preparationStep by Step Solution
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