Exercise 17-17 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 Direct labor Overhead (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge Squared Edge Total $ 9,300 $21,500 $ 30,800 6,200 11,800 18,000 18,680 35,400 54,800 $34,100 $68,700 $102,800 10,500 ft. 14,000 ft. $ 3.25 $ 4.91 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) Cost Supervision $ 2,160 Depreciation of machinery 28,840 Assembly line preparation 23,880 Total overhead $54,000 She has also collected the following information about the cost drivers for each category (cost pool and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Driver Rounded Edge Squared Edge Total Supervision Direct labor cost ($) $6,200 $11,800 $18,888 Depreciation of machinery Machine hours 300 hours 600 hours 900 hours Assembly line preparation Setups (number) 30 times 93 times 123 times