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 cont) Total cont Quantity produced Average cost per ft. crounded) Rounded Edge Squared my Total $9.400 $21,700 31/100 6.100 "11,900 18,000 10,300 35,760 56,000 $33,000 069,300 6103, 100 10400 t. 14,000 ft. # 3.25 $0.95 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 repprted above. She has collected the following information overhead Coat Category hetivity Coat Tool Supervision 32,160 Depreciation of machinery Assembly line preparation 23,000 Total overhead Cost 20,40 354.000 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.) Overhead Cost Category Activity Control Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost 15 Machine hours to tuber Rounded deurd Edge Total 36,100 $11,900 $10,000 400 hours 700 h 1.100 hours 31 time 93 times 124 Required: 1. Ansign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Supervision Direct labor cost Depreciation of machinery Machine hours Assembly line preparation Activity Rato % Setups Activity rate Activity driver Incurred Overhead assigned Rounded edge Supervision Depreciation of machinery Assembly line preparation Activity rate Activity driver incurred Overhead assigned Squared edge 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