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Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same...


Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the cur
used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Categ
Rounded edge Activity rate Activity driver incurred Overhead assigned Supervision Depreciation of machinery Assembly line pre
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. Rounded Edge $ 9,300 6.200 Direct materials Direct labor Overhead (300 of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) 18,600 $34,100 10,600 ft. Squared Edge Total $21.500 11.00 18.000 35,400 $103,100 14,100 ft. 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 $ Overhead Cost Category (Activity cost Pool). Supervision Depreclation of machinery Assembly line preparation Total overhead 2.16 28,40 $ 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.)
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 (5) Machine hours Setups (number) Rounded Edge $6,280 40 hours 30 times Squared Edige $11,800 700 hours 93 times Total $18,000 1,100 hours 123 times Required: Activity Rate 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Supervision Direct labor cost Depreciation of machinery Machine hours Assembly line preparation Setups Rounded edge Activity driver incurred Overhead assigned Activity rate 0 % Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned
Rounded edge Activity rate Activity driver incurred Overhead assigned Supervision Depreciation of machinery Assembly line preparation Activity rate Activity driver incurred Overhead assigned Squared edge Components - Supervision Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge < Prev 10 of 13 !!! Next >
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1. Assign these three overhead cost pools to each of the two products using ABC.
Activity Overhead Cost ($) Activity Drivers Activity Rate
Supervision                         2,160 Direct Labor Cost Direct Labor Cost 12 % =2160/18000
Depreciation of Machinery                       28,840 Machine Hours Machine hours 26.22 =28840/1100
Assembly line preparation                       23,000 Setups (numbers) Setups 186.99 =23000/123
Rounded edge Activity rate Activity driver incurred Overhead assigned
Supervision 34.44 % 0 6200                744 =(6200/18000)*2160 = (744/2160)*100
Depreciation of Machinery 10487.27 0 400           10,487 = (400/1100)*28840
Assembly line preparation 5609.76 0 30             5,610 =(30/123)*23000
16841.03
Rounded edge Activity rate Activity driver incurred Overhead assigned
Supervision 65.56 % 0                               11,800        1,416.00 =(11800/18000)*2160 = (1416/2160)*100
Depreciation of Machinery 18352.73 0                                    700      18,352.73 = (700/1100)*28840
Assembly line preparation 17390.24 0                                      93      17,390.24 =(93/123)*23000
     37,158.97
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