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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. Direct materials Direct labor Overhead (3eex of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,40e 6,eee 18,888 $ 33,40e 10,300 ft. $ 3.24 Squared Edge Total $ 21,800 $ 31,200 11,800 17,800 35,400 53,400 $ 69,000 $102,400 14,200 ft. $ 4.86 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,400 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 $ 2,136 28, 520 22, 744 $ 53,400 ollowing 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 $6,000 300 hours 32 times Squared Edge $11,800 700 hours 94 times Total $17,800 1,000 hours 126 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Overhead Cost Activity Drivers Activity Rate Direct labor cost % Activity Supervision Depreciation of machinery Assembly line preparation Machine hours Setups Activity driver incurred Overhead assigned Activity rate % 10 Rounded edge Supervision Depreciation of machinery Assembly line preparation 0 10 Activity driver incurred Overhead assigned Activity rate % 10 Squared edge Components Supervision Depreciation of machinery Assembly line preparation 0 0 AD 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge

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