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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

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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 Direct materials $ 9,400 $22,500 $ 30,900 Direct labor 6,100 11,900 18.000 Overhead (300% of direct labor cost) 18,300 35,700 54.000 Total cost 533,800 $69,100 $102,900 Quantity produced 10,700 ft. 14,100 ft Average cost per ft. (rounded) $ 3.16 $ 4.90 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 Coat Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2.160 28,840 23,000 $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.) Overhead coat Category (htivity Cost Pool) Supervision Depreciation of machinery Aasembly line preparation Driver Direct labor coat () Machine hours Setupa number) Rounded Edge $6,100 200 hours 31 times Squared Edge $11,500 000 hours 9) tines Total $10,000 1,000 hours 124 times Danului Saved Activity Rate Required: 1. Assign 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 tine preparation Setups Rounded edge Activity rate Supervision % Depreciation of machinery Assembly line preparation % Activity driver incurred Overhead assigned Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly fine preparation % 2. Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge

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