chapter 17 question 14

Check my work 14 Exercise 17-17 Activity-based costing LO P3 1.33 points 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. eBook Hint Print Direct materials Direct labor Overhead (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,500 6,000 18,000 $33,500 10,700 ft. $ 3.13 Squared Edge Total $21,600 $ 31,100 11,800 17,800 35,400 53,400 $68,800 $102,300 14,200 ft. $ 4.85 References Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,400 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 $ 2,136 28,520 22,744 $ 53,400 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 Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge $6,000 200 hours 32 times $17, Squared Edge $11,800 600 hours 95 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Overhead Cost Activity Drivers Activity Rate Direct labor cost % Activity Supervision Depreciation of machinery Assembly line preparation Machine hours Setups Rounded edge Activity rate Activity driver incurred Overhe % Supervision Depreciation of machinery Assembly line preparation Check my work 14 1.33 points viassVUIKS LUMILI VITET WISTIEJ LU apply allvily-waseu costing (ABC) to allocate the $53,400 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. eBook 000 Hint Cost Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead $ 2,136 28,520 22,744 $53,400 Print References She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge $6,000 200 hours 32 times $17, Squared Edge $11,800 600 hours 95 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Overhead Cost Activity Drivers Activity Rate Direct labor cost % Activity Supervision Depreciation of machinery Assembly line preparation Machine hours Setups Activity rate Activity driver incurred Overhe % Rounded edge Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhe Components Supervision Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge