Glass Company manufactures two types of wine glasses that are sold in sets of four; Regular...

  

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Glass Company manufactures two types of wine glasses that are sold in sets of four; Regular Glass and Fine Crystal Glass Company uses activity based costing to assign manufacturing overhead to products. and have identified the following activity cost pools and activity measures related to the current period's $250,000 manufacturing overhead: 1. Activity for each of the products is: 2. 3. Activity Machine processing of glasses Product testing 4. Processing production orders General factory costs Machine Hours Hours of testing Number of orders Direct labor hours Regular Glass 30,000 2,000 1125 5,000 25,000 Activity Measure Machine hours 2-86 Hours of testing time Number of orders Direct labor hours Fine Crystal 50,000 5,000 2,000 10,000 Classify each of Glass Company's overhead activities as either unit level, batch level, product level, or facility level activity. Machine hours Unit-level Processing production orders batch-level Product testing product-level General factory costs -level Compute the activity rate for each of the four activities listed. Machine processing Product testing Processing orders Compute total overhead assigned to Fine Crystal 50,000 x 1.125 = 56250 5000 x 2.9614300 2000 x 5 = 10000 10000 x 3 = 3000 Total Cost $ 90,000 $ 20,000 $ 35,000 $105,000 Total MOH $250,000 = 83550 Total 80,000 7,000 7,000 35,000 facility General factory Compute per unit overhead assigned to Fine Crystal, assuming 3,000 units of Fine Crystal were manufactured during the current period. Glass Company manufactures two types of wine glasses that are sold in sets of four; Regular Glass and Fine Crystal Glass Company uses activity based costing to assign manufacturing overhead to products. and have identified the following activity cost pools and activity measures related to the current period's $250,000 manufacturing overhead: 1. Activity for each of the products is: 2. 3. Activity Machine processing of glasses Product testing 4. Processing production orders General factory costs Machine Hours Hours of testing Number of orders Direct labor hours Regular Glass 30,000 2,000 1125 5,000 25,000 Activity Measure Machine hours 2-86 Hours of testing time Number of orders Direct labor hours Fine Crystal 50,000 5,000 2,000 10,000 Classify each of Glass Company's overhead activities as either unit level, batch level, product level, or facility level activity. Machine hours Unit-level Processing production orders batch-level Product testing product-level General factory costs -level Compute the activity rate for each of the four activities listed. Machine processing Product testing Processing orders Compute total overhead assigned to Fine Crystal 50,000 x 1.125 = 56250 5000 x 2.9614300 2000 x 5 = 10000 10000 x 3 = 3000 Total Cost $ 90,000 $ 20,000 $ 35,000 $105,000 Total MOH $250,000 = 83550 Total 80,000 7,000 7,000 35,000 facility General factory Compute per unit overhead assigned to Fine Crystal, assuming 3,000 units of Fine Crystal were manufactured during the current period.

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