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. 6.100 Direct materials Direct labor Overhead (3001 of direct labor cost) Total cost Quantity produced Average cont per ft. (rounded) Rounded Edge Squared Edge Total $ 9,400 $21,600 $ 31,000 11,900 18,000 18,300 35,700 54,000 $33,800 $69,200 $103,000 10,600 ft. 14,000 ft. $ 3.19 $ 4.94 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 3 ences Overhead Cost Category (Activity cost Pool) Supervision Depreciation of machinery Assebly line preparation Total overhead Cost $ 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.) Overhead Coat Category Activity Coat Pool) Supervision Depreciation of machinery Assembly line preparation Driver Direct labor cost (5) Machine hours Setupe (number) Rounded Edge $6,100 300 hours 30 times Squared Edge $11.900 600 hours 95 times Total $18,000 900 hours 125 times 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 (5) Machine hours Setups (number) Rounded Edge Squared Edge $6,100 $11,900 300 hours 600 hours 30 times 95 times Total $18,000 900 hours 125 times 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 Activity Rate % Activity rate Activity driver Incurred Overhead assigned nces % Rounded edge Supervision Depreciation of machinery Assembly line preparation Activity rato 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. Homepage - Prin Managerial Acetg Connect mework Sived Hel Depreciation of machinery Assembly line preparation Machine hours 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 Depreciation of machinery Assembly line preparation % 2. Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge es
