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 (3008 of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9, 700 6.100 18,300 $34,100 10,300 ft. $ 3.31 Squared Edge Total $21,700 $ 31,400 11.900 18.000 35,700 54,000 $69,300 $103,400 14,000 ft. S 4.95 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 reported above. She has collected the following information. Overhead Cost Category (retivity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 2.160 28,840 23,000 $54.000 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) tage Overhead Cost Category [notivity Coat Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setup (number) Rounded Edge $ 6, 100 200 hours 30 times Squared Edge $11,900 700 hours 93 times Total $18,000 900 hours 123 times Required: She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Coat Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cont ($) Machine hours Setups (number) Rounded Edge Squared Edge $ 6, 100 $11,900 200 hours 700 hours 30 times 93 timen Total $18,000 900 hours 123 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 Activity rate Activity driver Rounded edge Overhead assigned incurred Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned 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
