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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 $ 9,500 $21,600 $ 31,100 Direct labor 6,200 12,800 18,200 Overhead (3884 of direct labor cost) 18,600 36,000 54,600 Total cost $34,300 $69,600 $103,900 Quantity produced 10,500 ft. 14,000 ft. Average cost per ft. (rounded) $ 3.27 $ 4.97 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,600 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 $ 2,184 Depreciation of machinery 29, 160 Assembly line preparation 23,256 Total overhead $54,600 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 (5) $6,200 $12,000 $18,200 Depreciation of machinery Machine hours 400 hours 600 hours 1,000 hours Assembly line preparation Setups (number) 32 times 93 times 125 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC Activity Overhead Cost Activity Drivers Supervision Direct labor cost Depreciation of machinery Machine hours Assembly line preparation Setups Activity Rate % Activity driver Incurred Overhead assigned Rounded edge Supervision Depreciation of machinery Assembly line preparation Activity rato % 0 0 0 Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge Squared Edge $6,200 $12,000 400 hours 600 hours 32 times 93 times Total $18, 200 1,800 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 Activity driver Incurred Overhead assigned Activity rate % 0 Squared edge Components Supervision Depreciation of machinery Assembly line preparation 0 10 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge

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