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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 (300% of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge Squared Edge Total $19, see $ 43,200 $ 62,200 12,200 23,800 36,000 36,600 71, 480 188,888 $67,800 $138,400 $206,208 10,500 ft. 14,100 ft. $ 6.46 $ 9.82 Glassworks's controller wishes to apply activity based costing (ABC) to allocate the $108,000 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 Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Total overhead Cost $ 5,400 56,600 46,000 $108,eee She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge Squared Edge $12,200 $23,800 500 hours 1,500 hours 40 times 210 times Total $36,000 2,000 hours 250 times 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Supervision $ 5,400 $ 36,000 Direct labor cost Depreciation of machinery 56,600 2,000 Machine hours Assembly line preparation 46,000 250 Setups Activity Rate 15.00 % $ 28.30 $ 184.00 of direct labor cost per machine hour per set up Rounded edge Activity rate Activity driver incurred Overhead assigned Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned % O 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

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