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 Rounded Edge Squared Edge Total $21,500 11,800 35,400 Direct materials $ 9,500 6,200 18,600 $31,000 18,000 54,000 Direct labor overhead (300% of direct labor cost) $34,300 $68,700 $103,000 Total cost Quantity produced 14,100 ft 10,400 ft. $ 3.30 S 4.87 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 Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Cost $ 2,160 28,840 23,000 $54,000 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 Overhead Cost Category (Activity Cost Pool) Supervision Driver Rounded Edge Squared Edge $6,200 200 hours Total Direct labor cost ($) Machine hours $11,800 $18,000 700 hours Depreciation of machinery Assembly line preparation 900 hours Setups (number) 32 times 95 times 127 times Required 1. Assign these three overhead cost pools to each of the two products using ABC Activity Overhead Cost Activity Drivers Activity Rate Supervision Direct labor cos Depreciation of machinery Machine hours Setups Assembly line preparation Activity driver incurred Rounded edge Activity rate Overhead assigned Supervision Depreciation of machinery Assembly line preparation Activity driver incurred Squared edge Overhead assigned Activity rate Components Supervision Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge