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Hodge, Honer, and Robinson Inc produces shelving for classrooms at colleges and universities. The company produces 2 types of shelving - rounded and squared shelving,

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Hodge, Honer, and Robinson Inc produces shelving for classrooms at colleges and universities. The company produces 2 types of shelving - rounded and squared shelving, on the same production line. For the current period, Hodge, Honer, and Robinson Inc reported the following data. Direet materials Direct labor Overhead (3001 of direct labor cost) Total cost Quantity produced Average cost per it. (rounded) Rounded Shelving 5 9,500 6,200 18,600 $34,300 10,500 ft. $ 3.27 Squared Shelving Total $21,400 $ 30,900 12,000 18,200 36,000 54,600 $69,400 $103, 700 14,200 ft. $ 4.89 Hodge, Honer, and Robinson Inc's CFO 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. The CFO provided the following information Overhead Cost Category Cost (Activity Cost Pool) Supervision $ 2,184 Machinery Depreciation 29,160 Preparation - Assembly Line 23, 256 Total overhead $54,600 The CFO also provided 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 Coat Category (Activity Cont Pooly Supervision Machinery Depreciation Preparation- Assembly line Driver Direct labor cost (5) Machine hours Setups (number) Rounded Edge Squared Edge $6,200 $12,000 400 hours 600 hours 30 times 95 times Total $28,200 1,000 hours 125 times 1. Assign these three overhead cost pools to each of the two products using ABC Activity Rate % Activity Supervision Depreciation of machinery Assembly line preparation Overhead Cost $ 2,184 29.160 23,256 Activity Drivers $ 18.200 Direct labor cost 1,000 Machine hours 125 Setups 8:41 Rounded edge Activity driver Incurred Activity rate O Overhead assigned Supervision Depreciation of machinery Assembly line preparation 0 0 Activity rate Activity driver Incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly line preparation % 0 0 0 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge

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