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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

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 $ 9,600 $ 21,700 $ 31,300
Direct labor 6,200 12,000 18,200
Overhead (300% of direct labor cost) 18,600 36,000 54,600
Total cost $ 34,400 $ 69,700 $ 104,100
Quantity produced 10,400 ft. 14,200 ft.
Average cost per ft. (rounded) $ 3.31 $ 4.91

Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,600 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 $ 2,184
Depreciation of machinery 29,160
Assembly line preparation 23,256
Total overhead $ 54,600

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 ($) $ 6,200 $ 12,000 $ 18,200
Depreciation of machinery Machine hours 200 hours 800 hours 1,000 hours
Assembly line preparation Setups (number) 31 times 94 times 125 times

Required:

image text in transcribed

Activity Overhead Cost Activity Drivers Activity Rate 56 Supervision Depreciation of machinery Assembly line preparation Direct labor cost Machine hours Setups Rounded edge Activity rate Activity driver incurred Overhead assigned 960 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 10 10 2. Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge

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