Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the curren
t period, the company reports the following data. Rounded Edge Squared Edge Total Direct materials $ 9,600 $ 21,500 $ 31,100 Direct labor 6,200 11,800 18,000 Overhead (300% of direct labor cost) 18,600 35,400 54,000 Total cost $ 34,400 $ 68,700 $ 103,100 Quantity produced 10,600 ft. 14,100 ft. Average cost per ft. (rounded) $ 3.25 $ 4.87 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) Cost Supervision $ 2,160 Depreciation of machinery 28,840 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 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 ($) $ 6,200 $ 11,800 $ 18,000 Depreciation of machinery Machine hours 200 hours 700 hours 900 hours Assembly line preparation Setups (number) 31 times 94 times 125 times
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