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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 (3008 of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) unded Edge $ 9.600 6,100 18,300 $34,000 10.400 ft. 3.27 Squared Edge Total $21,500 $ 31,100 11,900 18,000 35,700 54,000 $69,100 $103,100 14,100 ft. $ 4.90 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $54,000 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 Coat $ 2,160 28.840 23,000 $ 54,000 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.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Driver Direct labor cost (5) Machine hours Rounded Edge $6,100 300 hours Squared Edge $11,900 600 hours Total $18,000 900 hours She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places.) Usage Overhead Cost Category (Activity Cost Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost ($) Machine hours Setups (number) Rounded Edge $6,100 300 hours 31tines Squared Edge $11,900 600 hours 95 times Total $18,000 900 hours 126 times Activity Rate Required: 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 incurred Overhead assigned Supervision Depreciation of machinery Assembly line preparation Activity rate Activity driver incurred Overhead assigned Squared edge Components Supervision HUIP Suve & EXIS Rounded edge Activity rate Activity driver Overhead assigned incurred %0 Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision Depreciation of machinery Assembly line preparation O f 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge

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