Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Looking for a solution to the following question Glassworks Inc. produces two types of glass shelving. rounded edge and squared edge. on the same production

Looking for a solution to the following question

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 3 31,100 Direct labor 6,200 11,300 13,000 Overhead {300% of direct labor cost} 13. E00 35, 400 54, 000 lI'otal cost $34,300 $63,000 $103,100 Quantity produced 10 , 3'00 it . 14 , 000 ft . Average cost per ft. (rounded) 3 3-21 3 '1 -91 Glassworks's oontroller 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. She has collected the following information. Overhead Coot Category (Activity Cost Pool} cm": Supervision $ 2 , 16 0 Depreciation of machinery 23,3t0 Assembly line preparation 23,000 Total overhead $54,000 She has also collected the following information about the cost drivers for each category [cost pool] and the amount ofeach driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places] Uaa Overhead Coot Category (Activity Cost Pool} Driver Founded Edge Squared Edge Total Supervision Direct labor cost {3) $6,200 $11,300 $18,000 Depreciation of machinery Machine hours 200 hours 300 hours 1,000 hours Assembly line preparation Setups (number) 32 times 93 times 125 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 % 10 Depreciation of machinery 0 Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision % 10 Depreciation of machinery 0 Assembly line preparation 0 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_2

Step: 3

blur-text-image_3

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

Financial Accounting Plus

Authors: Robert Libby, Patricia Libby, Daniel Short

8th Edition

1259116832, 9781259116834

More Books

Students also viewed these Accounting questions