Question

I need help with my assignment please

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 Direct labor Overhead (300% of direct labor cost) Rounded Edge $ 9,700 6.100 18,300 Squared Edge $ 21,700 11.800 35,400 Total $ 31,400 17.900 53,700 Total cost $ 34, 100 $ 68,900 $ 103,000 Quantity produced Average cost per ft (rounded) 10,500 ft 3.25 $ 14, 100 ft 4.89 $ Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,700 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 Cost Category Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation $ Cost 2,148 28,680 22.872 Total overhead $ 53,700 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.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total Driver Direct labor cost (S) Machine hours Setups (number) Rounded Edge Squared Edge $ 6.100 $ 11,800 200 hours 800 hours 31 times 93 times $ 17,900 1,000 hours 124 times

Answer 1

Answer

• Requirement asked

Activity	Overhead cost	Activity driver		Activity rate
Supervision	$2,148	$17,900	Direct labor cost	12%	of direct labor cost
Depreciation of machinery	$28,680	1000	Machine hour	$28.68	per machine hours
Assembly line preparation	$22,872	124	Setups	$184.45	per setup
ROUNDED EDGE	Activity rate		Activity driver incurred	Overhead assigned
Supervision	12%	of direct labor cost	$6,100	$732
Depreciation of machinery	$28.68	per machine hours	200	$5,736
Assembly line preparation	$184.45	per setup	31	$5,718
				$12,186
SQUARED EDGE	Activity rate		Activity driver incurred	Overhead assigned
Supervision	12%	of direct labor cost	$11,800	$1,416
Depreciation of machinery	$28.68	per machine hours	800	$22,944
Assembly line preparation	$184.45	per setup	93	$17,154
				$41,514

	ROUNDED EDGE	SQUARED EDGE
Direct materials	$9,700	$21,700
Direct labor	$6,100	$11,800
Overhead	$12,186	$41,514
Total cost	$27,986	$75,014
Quantity produced (feet)	10500	14100
Cost per foot	$2.67	$5.32