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Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the cur 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 cur period, the company reports the following data. Direct materials Direct labor Overhead (3001 of direct labor cost) Total cost Quantity produced Average cost per ft. (rounded) Rounded Edge $ 9,700 6,100 18,300 $34,100 10,500 ft. $ 3.25 Squared Edge Total $21,400 $ 31,100 11,800 17,900 35,400 53.700 $68,600 $102,700 14,200 ft. $ 4.83 Glassworks's controller wishes to apply activity-based costing (ABC) to allocate the $53,700 of overhead costs incurred by the tw 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 $ 2,148 28,680 22,872 $ 53,700 She has also collected the following information about the cost drivers for each category (cost pool) and the amount of each driv 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 30 times Squared Edge $11,800 600 hours 94 times Total $17,900 900 hours 124 times 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Supervision $ 2,148 $ 17,900 Direct labor cost Depreciation of machinery 28,680 1,000 Machine hours Assembly line preparation 22,872 127 Setups Activity Rate 12.00 % $ 28.68 $ 180.09 Activity driver incurred of direct labor cost Per machine hour Per setup Rounded edge Overhead assigned Activity rate of direct labor cost 12.00 % Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision Depreciation of machinery Assembly line preparation $ $ 12.00 % 28.68 180.09 of direct labor cost 0 0 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge $ 9,600 $ 21,400 Total direct labor cost 6,100 11,800 Total overhead cost(ABC) 17,967 35,733 Total manufacturing cost 33,667 $ 68,933 Total production(feet) 10,400 14,100 Average cost per foot $ 3.24 $ 4.89

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