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

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

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.Direct materialsRounded Edge$ 9,5006,200Total$ 31,300Direct laborSquared

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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