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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 $21,400 $ 30,900 Direct labor 6,000 11,800 17,880 Overhead (300% of direct labor cost) 18,000 35,400 53,400 Total cost $33,500 $68,688 $102,100 Quantity produced 10,300 ft. 14,200 ft. Average cost per ft. (rounded) $ 3.25 $ 4.83 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 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. Overhead Cost Category (Activity Cost Pool) Cost Supervision $ 2,136 Depreciation of machinery 28,520 Assembly Line preparation 22, 744 Total overhead $53,400 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) $6,000 $11,800 $17,800 Depreciation of machinery Machine hours 400 hours 600 hours 1,000 hours Assembly Line preparation Setups (number) 32 times 95 times 127 times Required: 1. Assign those throw overhead cost pool 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 Rate 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 % 0 Rounded edge Supervision Depreciation of machinery Assembly line preparation 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

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