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Hodge, Lester, and Reid Inc. produces two types of shelving, rounded edge and squared edge, on the same production line. For the current period, Hodge,

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Hodge, Lester, and Reid Inc. produces two types of shelving, rounded edge and squared edge, on the same production line. For the current period, Hodge, Lester, and Reid Inc. reported the following data. Direct materials Direct labor Overhead (3001 of direct labor cost) Total cost Quantity produced Rounded Edge $ 9,500 6,200 18,600 $34,300 10,700 ft. $ 3.21 Squared Edge Total $21,800 $ 31,300 11,800 18,000 35,400 54,000 $69,000 $103,300 14,000 ft. $ 4.93 Average cost per ft. (rounded) Hodge, Lester, and Reid Inc.'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. The controller provided the following information. Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 Depreciation of machinery 28,840 Aanembly line preparation 23.000 Total overhead $ 54,000 Cost The controller 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.) Usage Overhead Cost Category (Activity Coat Pool) Driver Rounded Edge Squared Edge Total Supervision Direct labor coat ($) $6,200 $11,800 $18,000 Depreciation of machinery Kachine hours 400 hours 800 hours 1,200 hours Asembly line preparation Setups (number) 32 times 95 times 127 times Required: 1. 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 line preparation Setups Activity Rato % Activity Rato % Required: 1. 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 line preparation Setups Rounded edge Activity rato Supervision % 10 Depreciation of machinery Assembly line preparation Activity driver Incurred Overhead assigned 0 0 Activity rato 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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