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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 $ 19,000 12,200 36,689 $ 67,800 Squared Edge $ 43,200 23,800 71,400 $ 138,400 14,100 ft Total $ 62,200 36,000 108,000 $206,200 10.500 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 $108,000 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Overhead Cost Category Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation AL Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge $12,209 See hours 40 times Squared Edge $23,800 1,500 hours 210 times Total $36.000 2,000 hours 250 times Required: 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 Rounded edge Activity rate Activity driver Overhead assigned Supervision Depreciation of machinery Assembly in preparation Activity rate Activity driver incurred Overhead assigned Squared edge 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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