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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,
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 average cost pox tt. (rounded) Rounded Edge Squared Edge Total $ 9,300 $21,600 $ 30.900 6,000 11,800 17,800 18.000 35,400 53.400 $33,300 568.800 9102,100 10,500 ft. 14,000 ft. $ 3.17 $4.91 Hodge, Lester, and Reld Incs 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. The controller provided the following information overhead Coat Category Cout Netivity cont Pool) Supervision $ 2,136 Depreciation of machinery 20,590 Assembly Line preparation 22104 Total overhand $53,400 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.) Overhead Cost Category City Control) supervision Depoints of money Asanbly line preparation DEVA Direct labor cont (5) Machine heure Setupe (number) Unage Rounded Rage quared de $6,000 $11,000 200 hours 600 bours 30 times 95 Total $17,000 O hours 125 in Required: 1. Anitha thus the cost pools to ach of the two products in ANG Acovity Overhead Cost Activity Drivers Supervision Direct labor cost Dection of rachinery Machine hours Activity Rate
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