Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the currentperiod, the company reports the following data.Rounded Edge$ 9,5006,200Squared Edge$ 21,800Total$ 31,300Direct materialsDirect labor11,80035,40018,00054,000Overhead (300% of direct labor cost)18,600Total cost$34,300$ 69,000$103,300Quantity producedAverage cost per ft. (rounded)$ 3.21$ 4.86Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 of overhead costs incurred by the twoproduct lines to see whether cost per foot would change markedly from that reported above. She has collected the followingnformation.CostOverhead Cost Category(Activity Cost Pool)Supervision$ 2,16028,840Depreciation of machineryAssembly line preparation23,000Total overhead$ 54,000he has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driversed by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)Henna< Prev6 of 6#Next >***********O10,700 ft.14,200 ft.G used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.)UsageOverhead Cost Category(Activity Cost Pool)SupervisionDriverTotalRounded Edge$6,200Squared Edge$11,800Direct labor cost ($)Machine hours1,200 hoursDepreciation of machineryAssembly line preparation400 hours30 times800 hours95 times.Setups (number)125 timesRequired:1. Assign these three overhead cost pools to each of the two products using ABC.ActivityOverhead CostActivity RateActivity Drivers$Supervision$2,16012.00 % of direct labor cost18,000 Direct labor costMachine hoursDepreciation of machinery28,840Per machine hourAssembly line preparation23,000125 Setups$184.00Per setupRounded edgeActivity rateActivity driverincurredSupervision12.00 % of direct labor costDepreciation of machineryPer machine hourAssembly line preparationPer setup30Activity driverincurredNext >OSquared edgeComponents$ 184.00Total overhead costActivity rate< Prev*******6 of 6⠀G$18,000Overhead assigned5,5205,520$Overhead assignedCI

Name: Glassworks Inc. produces two types of glass shelving, rounded edge an
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Description: Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the currentperiod, the company reports the following data.Rounded Edge$ 9,5006,200Squared Edge$ 21,800Total$ 31,300Direct materials

ACTIVITY-BASED COSTING It is a method of costing that identifies activities in a corporation and…

Business

Accounting

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. Total Direct materials Rounded Edge $ 9,500 6,200 Squared Edge $21,800 11,800 35,400 Direct labor $ 31,300 18,000 54,000 Overhead (300% of direct labor cost) 18,600 Total cost $103,300 $ 34,300 10,700 ft. $ 3.21 $ 69,000 14,200 ft. Quantity produced Average cost per ft. (rounded) $ 4.86 Glassworks'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. She has collected the following nformation. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 Depreciation of machinery Assembly line preparation Total overhead 28,840 23,000 $54,000 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.)

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. Total Direct materials Rounded Edge $ 9,500 6,200 Squared Edge $21,800 11,800 35,400 Direct labor $ 31,300 18,000 54,000 Overhead (300% of direct labor cost) 18,600 Total cost $103,300 $ 34,300 10,700 ft. $ 3.21 $ 69,000 14,200 ft. Quantity produced Average cost per ft. (rounded) $ 4.86 Glassworks'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. She has collected the following nformation. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 Depreciation of machinery Assembly line preparation Total overhead 28,840 23,000 $54,000 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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