Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help please Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current period, the

Help please

image text in transcribedimage 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. Rounded Edge Squared Edge Total Direct materials $ 9,500 $21,600 $ 31,100 Direct labor 6,000 11,800 1?,800 Overhead (300% of direct labor cost) 18,000 35,400 53,400 Total cost $33,500 $60,800 $102,300 Quantity produced 10,300 ft. 14,000 ft. Average cost per ft. (rounded) S 3.25 S 4.91 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,400 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) \"'5\" Supervision S 2,136 Depreciation of machinery 23,520 Assembly line preparation 22,744 Total overhead $53,400 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] Driver Rounded Edge Squared Edge Total Supervision Direct labor cost (S) $6,000 $11,300 $1?,800 Depreciation of machinery Machine hours 400 hours 800 hours 1,200 hours Assembly line preparation Setups (number) 30 times 93 times 123 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Activity Rate Supervision Direct labor cost % Depreciation of machinery Machine hours Assembly line preparation Setups Rounded edge Activity rate Activity driver incurred Overhead assigned Supervision % Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned 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

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

Psychology Applied To Teaching

Authors: Jack Snowman, Rick McCown

14th Edition

1285734556, 9781285734552

More Books

Students also viewed these Accounting questions