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 (300x of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,790 6,100 18,300 $ 34,100 10,500 ft. $ 3.25 Squared Edge Total $ 21,500 $ 31,200 11,500 17,900 35,400 53,799 $ 68,700 $102,800 14,100 ft. $ 4.87 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 Cost Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead $ 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 Accomhly line arenaratin Driver Direct labor cost (5) Machine hours Catunc in Rounded Edge 56,100 300 hours 31 image Squared Edge $11,800 700 hours 94 times Total $17,900 1,000 hours 125 timae 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 (5) Machine hours Setups (number) Rounded Edge 56,100 300 hours 31 times Squared Edge $11,800 799 hours 94 times Total $17,900 1,290 hours 125 times 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 line preparation Setups Rounded edge Activity rate Supervision % 0 Depreciation of machinery 0 Assembly line preparation 0 Activity driver incurred Overhead assigned Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision 96 0 % Direct labor cost Machine hours Setups Supervision Depreciation of machinery Assembly line preparation Rounded edge Supervision Depreciation of machinery Assembly line preparation Activity rate % lo Activity driver incurred Overhead assigned 0 0 Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision Depreciation of machinery Assembly line preparation % 0 0 0 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge
