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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 Rounded Edge $ 9,500 6,200 Squared Edge $21,800 Total $ 31,300 Direct labor 11,800 Overhead (300% of direct labor cost) 18,000 54,000 18,600 35,400 Total cost $103,300 Quantity produced $34,300 10,700 ft. 3.21 $ 69,000 14,200 ft. 4.86 Average cost per ft. (rounded) $ 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. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 Depreciation of machinery Assembly line preparation Total overhead 28,840 23,000 $ 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.) H

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 Rounded Edge $ 9,500 6,200 Squared Edge $21,800 Total $ 31,300 Direct labor 11,800 Overhead (300% of direct labor cost) 18,000 54,000 18,600 35,400 Total cost $103,300 Quantity produced $34,300 10,700 ft. 3.21 $ 69,000 14,200 ft. 4.86 Average cost per ft. (rounded) $ 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. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 Depreciation of machinery Assembly line preparation Total overhead 28,840 23,000 $ 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.) H

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 30P: Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following...
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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 Rounded Edge $ 9,500 6,200 Total $ 31,300 Direct labor Squared Edge $ 21,800 11,800 35,400 Overhead (300% of direct labor cost) 18,000 54,000 18,600 Total cost $ 103,300 Quantity produced $ 34,300 10,700 ft. 3.21 $ 69,000 14,200 ft. $ 4.86 Average cost per ft. (rounded) $ 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. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 28,840 Depreciation of machinery Assembly line preparation 23,000 Total overhead $ 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.) llenna www < Prev 6 of 6 # Next > ****** OL O
Transcribed Image Text: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 Rounded Edge $ 9,500 6,200 Total $ 31,300 Direct labor Squared Edge $ 21,800 11,800 35,400 Overhead (300% of direct labor cost) 18,000 54,000 18,600 Total cost $ 103,300 Quantity produced $ 34,300 10,700 ft. 3.21 $ 69,000 14,200 ft. $ 4.86 Average cost per ft. (rounded) $ 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. Cost Overhead Cost Category (Activity Cost Pool) Supervision $ 2,160 28,840 Depreciation of machinery Assembly line preparation 23,000 Total overhead $ 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.) llenna www < Prev 6 of 6 # Next > ****** OL O
es 12.00 % of direct labor cost Per machine hour Per setup Squared edge Components Supervision Depreciation of machinery $ Assembly line preparation 24.03 $ 184.00 Total overhead cost Activity rate Supervision of direct labor cost Depreciation of machinery $ Per machine hour 24.03 184.00 Assembly line preparation $ Per setup Total overhead cost 2. Determine average cost per foot for each of the two products using ABC. Total direct material cost Total direct labor cost 12.00 % Rounded edge Squared edge 6,200 $ < Prev 6 of 6 H ****************** 01 G 0,200 400 30 Activity driver incurred $ 11,800 800 95 Next > ******** 9,616 5,520 $ 15,880 Overhead assigned $ 1,416 19,224 17,480 $ 38,120
Transcribed Image Text:es 12.00 % of direct labor cost Per machine hour Per setup Squared edge Components Supervision Depreciation of machinery $ Assembly line preparation 24.03 $ 184.00 Total overhead cost Activity rate Supervision of direct labor cost Depreciation of machinery $ Per machine hour 24.03 184.00 Assembly line preparation $ Per setup Total overhead cost 2. Determine average cost per foot for each of the two products using ABC. Total direct material cost Total direct labor cost 12.00 % Rounded edge Squared edge 6,200 $ < Prev 6 of 6 H ****************** 01 G 0,200 400 30 Activity driver incurred $ 11,800 800 95 Next > ******** 9,616 5,520 $ 15,880 Overhead assigned $ 1,416 19,224 17,480 $ 38,120
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