Looking for a solution to the following question
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 $ 9,500 $21,600 3 31,100 Direct labor 6,200 11,300 13,000 Overhead {300% of direct labor cost} 13. E00 35, 400 54, 000 lI'otal cost $34,300 $63,000 $103,100 Quantity produced 10 , 3'00 it . 14 , 000 ft . Average cost per ft. (rounded) 3 3-21 3 '1 -91 Glassworks's oontroller 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 Coot Category (Activity Cost Pool} cm": Supervision $ 2 , 16 0 Depreciation of machinery 23,3t0 Assembly line preparation 23,000 Total overhead $54,000 She has also collected the following information about the cost drivers for each category [cost pool] and the amount ofeach driver used by the two product lines. (Round activity rate and cost per unit answers to 2 decimal places] Uaa Overhead Coot Category (Activity Cost Pool} Driver Founded Edge Squared Edge Total Supervision Direct labor cost {3) $6,200 $11,300 $18,000 Depreciation of machinery Machine hours 200 hours 300 hours 1,000 hours Assembly line preparation Setups (number) 32 times 93 times 125 times Required: 1. Assign these three overhead cost pools to each of the two products using ABC. Activity Overhead Cost Activity Drivers Activity Rate Supervision Direct labor cost % Depreciation of machinery Machine hours Assembly line preparation Setups Rounded edge Activity rate Activity driver incurred Overhead assigned Supervision % 10 Depreciation of machinery 0 Assembly line preparation Squared edge Activity rate Activity driver incurred Overhead assigned Components Supervision % 10 Depreciation of machinery 0 Assembly line preparation 0 2. Determine average cost per foot for each of the two products using ABC. Rounded edge Squared edge