lassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the current eriod, the company reports the following data. Direct materials Rounded Edge Squared Edge Total 59,700 5 21,60 Direct labor $ 31,300 6,200 12,000 18,200 Overhead (300% of direct labor cost) 18 600 36.000 54, 680 Total cost $ 34,500 $ 69,600 3184, 100 Quantity produced 10,700 ft. 14,100 ft. Average cost per ft. (rounded) 3.22 $ 4.94 Slassworks'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 nformation Overhead Cost Category (Activity Cost Pool) Supervision $ 2,184 Depreciation of machinery 29, 160 Assembly line preparation Total overhead 354,600 Cost 23 256 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 (5) 56,200 $12,000 $18,200 Depreciation of machinery Machine hours 300 hours 700 hours 1,000 hours Assenbly line preparation Setups (number) 31 times 94 times 125 times Required: 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 Cost (Activity Cost Pool) Supervision $ 2,184 Depreciation of machinery 29,160 Assembly line preparation 23 256 Total overhead 354,600 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.) Uuage Overhead Cost Category (Activity Cost Pool) Driver Rounded Edge Squared Edge Total Supervision Direct Labor cost (5) $6,200 $12,000 $18,280 Depreciation of machinery Machine hours 300 hours 700 hours 2,800 hours Assembly line preparation Setups (number) 31 times 94 times 125 times Required: 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 Rounded edge Activity rate Activity driver Incurred Overhead assigned Supervision Depreciation of machinery Assembly line preparation Squared edge Activity rate Activity driver Overhead assigned Overhead Cost Activity Drivers Activity Rate Direct labor cost W activity Supervision 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 quared edge components Supervision Depreciation of machinery Assembly fine preparation Determine average cost per foot for each of the two products using ABC Rounded edge Squared edge
