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 $ 9,600 6,100 18,300 $34,000 $21,800 11,800 35,400 $69,000 Direct materials Direct labor overhead (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) $ 31,400 17,900 53,700 $103,000 10,300 ft. 14,200 ft. $ 3.30 $ 4.86 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 Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2,148 28,680 22,872 $53,700 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge Squared Edge Total $6,100 $11,800 $17,900 800 hours 93 times 300 hours 31 times 1,100 hours 124 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC Activity Overhead Cos Activity Drivers Activity Rate Supervision Depreciation of machinery Assembly line preparation Direct labor cost Machine hours Setups Activity driver incurred Rounded edge Activity rate Overhead assigned Supervision Depreciation of machinery Assembly line preparation Activity driver incurred Squared edge Activity rate Overhead assigned Components Supervision Depreciation of machinery Assembly line preparation 2. Determine average cost per foot for each of the two products using ABC Squared edge Rounded edge