Question

Homework 0 Seved Help Save & Exit Check 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) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,500 6, 100 18,300 $33,900 10,400 ft. $ 3.26 Squared Edge Total $21.500 $ 31,000 12,000 13, 100 36,000 54, 300 $69,500 $103, 400 14, 200 ft. $ 4.89 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 Cost Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead $ 2, 172 29,000 23,128 $54,300

Answer 1

Solition:

D E F G H I Computation of Activity rate Activity Overhead Cost Activity Drivers Supervision $2,172 $18,100 Direct Labor Cost Depreciation of machinery $29,000 1100 Machine hours Assembly line preparation $23,128 125 Setups Activity Rate 12.00% of direct labor cost $26.36 Per hour $185.02 per setup 9 Total $54,300 Computation of Overhead allocated Rounded Edge Activity driver Incurred $6,100 400 Supervision Depreciation of machinery Assembly line preparation Activity Rate 12% of direct labor cost $26.36 Per hour $185.02 per setup Total Overhead Assigned $732 $10,544 $5,736 $17,012 31 Squared Edge Activity Rate Activity driver Incurred $12,000 700 262 Supervision Depreciation of machinery Assembly line preparation 12% of direct labor cost $26.36 Per hour $185.02 per setup Total Overhead Assigned $1,440 $18,452 $17,392 $37,284 Computation of Average Cost per foot Rounded Edge Squared Edge Direct Material $9,500 $21,500 Direct labor $6,100 $12,000 Overhead Costs $17,012 $37,284 Total Costs / Quantity produced Average cost per foot $32,612 10400 $3.14) $70,784 14200 $4.98 2) Sheet212 Sheet211 Sheet49 (6) Sheet107 (28) She