Exercise 17-14 Activity-based costing LO P3 A2 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 Direct labor Overhead (3001 of direct labor cost) Total coat Quantity produced Average cont per tt. (rounded) Rounded Edge Squared Edge Total 5 9,600 $21,500 $ 31,100 6,000 11,900 17,900 18,000 35,700 53,700 $33,600 $69,100 $102,700 10,400 it. 14,100 it. $ 3.23 $ 4.90 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,700 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 cont category (htivity Cont Pool Supervision Depreciation of machinery Assembly the preparation Cost 28,60 22,072 553,700 Total overhead 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 Overboad cont category ALI cout Pool Supervision Depreciation of machinery Assembly Line preparation Driver Direct labor cost (5) Machine Bour Setupe number Rounded edge quared Edge $6,000 $12.00 400 hours 600 hours 32 time 95 Total 517,900 1.000 hours 127 times Activity Rate Required: 1. Assign these three the cost pool to each of the two producing ADC Activity Overhead Cost Activity Drivers Supervis Director Depreciation of machinery Machine hours Acabine portion Alvityste SO Derry Aby na preparation Acetyder incur Overhead 0 Com 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.) overhead Cont Category Activity Cout Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor coat (5) Machine hours Setups (number) Rounded Edge 36,000 400 hours 32 times Uongo Squared Edge $11.900 600 hours 95 times Total $17,900 1,000 hours 127 times Activity Rate Required: 1. Assign these three overhead cost pool to ach 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 Supervision 0 Depreciation of machinery 0 Assembly line preparation 0 Activity driver incurred Overhead assigned Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly fine preparation 0 0 0 2. Die per foot for each of the products using A Rounded edge Squared edge
