eriod, the company reports the following diets. Direct materials Direct labor Overhead (388% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Supervision Depreciation of machinery Assembly line preparation Rounded edge Supervision Depreciation of machinery Assembly line preparation Squared edge lessworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,300 of overhead costs incurred by the two roduct lines to see whether cost per foot would change markedly from that reported above. She has collected the following formation. Cost $ 2,172 29,808 23,128 $54,388 Components Supervision Depreciation of machinery Assembly line preparation Direct labor cast ($) Machine hours Setups (number) he has also collected the following Information about the cost drivers for each category (cost pool) and the amount of each driver sed by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers %0 D Rounded Edge $ 9,700 6,200 688 Activity rate $34,500 Activity rate 18,400 ft. %0 D 0 $ 3.32 Squared Edge $21,688 11,908 35,788 $60,200 Direct labor cost Machine hours Setups 2. Determine average cost per foot for each of the two products using ABC. Rounded edge 14,200 ft. 4.87 Rounded Edge $6,200 480 hours 31 times squared edge Total $ 31,300 18,180 54,380 $183,780 Activity Rate Squared Edge 788 hours 95 times Activity driver Incurred Usage Activity driver Incurred Total $18,188 1,188 hours 126 times Overhead assigned Overhead assigned
eriod, the company reports the following diets. Direct materials Direct labor Overhead (388% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Supervision Depreciation of machinery Assembly line preparation Rounded edge Supervision Depreciation of machinery Assembly line preparation Squared edge lessworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,300 of overhead costs incurred by the two roduct lines to see whether cost per foot would change markedly from that reported above. She has collected the following formation. Cost $ 2,172 29,808 23,128 $54,388 Components Supervision Depreciation of machinery Assembly line preparation Direct labor cast ($) Machine hours Setups (number) he has also collected the following Information about the cost drivers for each category (cost pool) and the amount of each driver sed by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers %0 D Rounded Edge $ 9,700 6,200 688 Activity rate $34,500 Activity rate 18,400 ft. %0 D 0 $ 3.32 Squared Edge $21,688 11,908 35,788 $60,200 Direct labor cost Machine hours Setups 2. Determine average cost per foot for each of the two products using ABC. Rounded edge 14,200 ft. 4.87 Rounded Edge $6,200 480 hours 31 times squared edge Total $ 31,300 18,180 54,380 $183,780 Activity Rate Squared Edge 788 hours 95 times Activity driver Incurred Usage Activity driver Incurred Total $18,188 1,188 hours 126 times Overhead assigned Overhead assigned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 dists.
Direct materials
Direct labor
Overhead (388% of direct labor cost)
Total cost
Quantity produced
Average cost per ft. (rounded)
Overhead Cost Category
(Activity Cost Pool)
Supervision
Depreciation of machinery
Assembly line preparation
Total overhead
Overhead Cost Category
(Activity Cost Pool)
Supervision
Depreciation of machinery
Assembly line preparation
Supervision
Depreciation of machinery
Assembly line preparation
Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,300 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.
Rounded edge
Supervision
Depreciation of machinery
Assembly line preparation
Cost
$ 2,172
Squared edge
|components
23,128
$54,300
Supervision
Depreciation of machinery
Assembly line preparation
She has also collected the following Information about the cost drivers for each category (cost pool) and the amount of
used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)
Driver
Direct labor cost ($)
Machine hours
Setups (number)
Required:
1. Assign these three overhead cost pools to each of the two products using ABC.
Activity
Overhead Cost
Activity Drivers
%0
0
0
Rounded Edge Squared Edge
$ 9,700
Activity rate
18,600
$34,500
18,400 ft.
$ 3.32
Activity rate
%10
0
0
$21,600
11,908
35,700
$ 69,288
Direct labor cost
Machine hours
Setups
2. Determine average coct per foot for each of the two products using ABC.
14,288 ft.
4.87
Rounded Edge
$6,200
Rounded edge Squared edge
488 hours
31 times
Total
$31,300
18,100
54,300
$103,700
Activity Rate
Squared Edge
$11,000
Activity driver
Incurred
Usage
Activity driver
Incurred
788 hours
95 times
Total
1,100 hours
126 times
$18,100
Overhead assigned
Overhead assigned
driver](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F32360486-4349-4d7a-a7c8-ee9ae2f6c554%2F669b8698-9803-4092-a02e-4fc82d78080a%2Fr4s2z0r_processed.png&w=3840&q=75)
Transcribed Image Text: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 dists.
Direct materials
Direct labor
Overhead (388% of direct labor cost)
Total cost
Quantity produced
Average cost per ft. (rounded)
Overhead Cost Category
(Activity Cost Pool)
Supervision
Depreciation of machinery
Assembly line preparation
Total overhead
Overhead Cost Category
(Activity Cost Pool)
Supervision
Depreciation of machinery
Assembly line preparation
Supervision
Depreciation of machinery
Assembly line preparation
Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,300 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.
Rounded edge
Supervision
Depreciation of machinery
Assembly line preparation
Cost
$ 2,172
Squared edge
|components
23,128
$54,300
Supervision
Depreciation of machinery
Assembly line preparation
She has also collected the following Information about the cost drivers for each category (cost pool) and the amount of
used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)
Driver
Direct labor cost ($)
Machine hours
Setups (number)
Required:
1. Assign these three overhead cost pools to each of the two products using ABC.
Activity
Overhead Cost
Activity Drivers
%0
0
0
Rounded Edge Squared Edge
$ 9,700
Activity rate
18,600
$34,500
18,400 ft.
$ 3.32
Activity rate
%10
0
0
$21,600
11,908
35,700
$ 69,288
Direct labor cost
Machine hours
Setups
2. Determine average coct per foot for each of the two products using ABC.
14,288 ft.
4.87
Rounded Edge
$6,200
Rounded edge Squared edge
488 hours
31 times
Total
$31,300
18,100
54,300
$103,700
Activity Rate
Squared Edge
$11,000
Activity driver
Incurred
Usage
Activity driver
Incurred
788 hours
95 times
Total
1,100 hours
126 times
$18,100
Overhead assigned
Overhead assigned
driver
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