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Business, 01.03.2021 21:50 Tirone

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 Squared Edge Total Direct materials $ 9,500 $ 21,400 $ 30,900 Direct labor 6,200 12,000 18,200 Overhead (300% of direct labor cost) 18,600 36,000 54,600 Total cost $ 34,300 $ 69,400 $ 103,700 Quantity produced 10,500 ft. 14,200 ft. Average cost per ft. (rounded) $ 3.27 $ 4.89 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,600 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) Cost Supervision $ 2,184 Depreciation of machinery 29,160 Assembly line preparation 23,256 Total overhead $ 54,600 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. (Do not round your intermediate calculations and round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category Tota (Activity Cost Pool) Driver Rounded Edge Squared Edge 11,900 200 hours 700 hours 18,100 Supervision Direct labor cost 6,200 Depreciation of machinery Machine hours 900 hours Assembly line preparation Setups (number) 30 times 94 times 124 times

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