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, Itounded de $9,500 6,200 18,600 5.14,300 10,600 ft. Direct materials Direct labor Overhead (500% of direct labor cost) Total cost Quantity produced Average cost per ft(rounded) Squared de $ 21,500 11,000 35,700 $ 69,100 14,200 Ft 4.02 Total $ 11,000 18,100 54,300 Glassworks's controller wishes to apply activity based costing (ABC) to allocate the $54,300 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 $ 2,172 Depreciation of machinery 29,000 Assembly line preparation 23, 120 Total overbead $54,300 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Overhead Cost Category (Activity Cost Pool Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) sounded Edge $6,200 200 hours 30 times Squared Edit $11,900 300 hours 96 times Total $18,100 1,000 hours 124 times Activity Rate 1. Assign these three overhead cost pools to each of the two products uning ABC. Activity Overhead Cost Activity Drivers Supervision Direct labor cost Depreciation of machinery Machine hours Assembly line preparation Setups % Activity rate Activity driver incurred Overhead assigned % 0 Rounded edge Supervision Depreciation of machinery Assembly line preparation 0 0 Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly line preparation 90 0 D 2. Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge