Exercise 04-17 Activity-based costing LO P3 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 Squared Edge Total $ 9,600 $21,800 $ 31,400 Direct labor 6,000 12,080 Overhead (3001 of direct labor cost) 18,eee 18,000 36,000 54,00 Total cost $33,600 $69,800 $183,400 Quantity produced 10,700 ft. 14,100 ft. Average cost per ft. (rounded) $ 3.14 $ 4.95 Glassworks's controller wishes to apply activity-based costing (ABC) b 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 Depreciation of machinery Assembly Line preparation Total overhead Cost $ 2,160 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.) 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 Squared Edge $6,000 $12,000 300 hours 800 hours 32 times 94 times Total $18,000 1.100 hours 126 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC Overhead Cost Activity Drivers Activity Rate % Activity Supervision Depreciation of machinery Assembly line preparation Direct labor cost Machine hours Setups Activity driver Incurred Overhead assigned Activity rate % o Rounded edge Supervision Depreciation of machinery Assembly line preparation 0 0 Activity driver Incurred Overhead assigned Squared edge Activity rate Components Supervision Depreciation of machinery Assembly line preparation OOO 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge