1. ( I did half of the problem already, see below) Vernon Electronics produces video games in three market categories: commercial, home, and miniature. Vernon has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

Category		Total Pooled Cost			Types of Costs	Cost Driver
Unit		$	746,900		Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch			569,600		Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product			211,600		Research and development	Time spent by research department
Facility			471,700		Rent, general utilities, maintenance, facility depreciation, admin. salaries	Square footage

Additional data for each of the product lines follow:

	Commercial				Home				Miniature				Total
Direct materials cost	$	36.50	/unit		$	24.40	/unit		$	29.70	/unit
Direct labor cost	$	15.00	/hour		$	15.00	/hour		$	18.20	/hour
Number of labor hours		5,800				11,600				2,400				19,800
Number of machine hours		16,000				40,000				21,000				77,000
Number of production orders		290				2,200				710				3,200
Research and development time		11	%			19	%			70	%			100	%
Number of units		11,000				47,000				10,000				68,000
Square footage		18,000				47,000				24,000				89,000

Required

Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.

Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

(For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount.)

	Type of Product	Total Cost	Cost per Unit
a.	Commercial
	Home
	Miniature
	Combined total	$0
b.	Commercial	$813,996	$74.00
	Home	2,389,704	50.84
	Miniature	946,080	94.61
	Combined total	$4,149,780