2. 4 points Magle Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product profits have been steadily declining, Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing, Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from last year. Manufacturing overhead was $1520,000 based on production of 350,000 handheld consoles and 91,000 home consoles Direct labor and direct materials costs were as follows Dim Direct labor Materiale Reference Handheld 33,490,000 780,000 Hone $406,000 565,000 Total $1.900.000 1.445,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows Activity level Cost Devec Contenighed sandheld one total Number of production runs $ 780,000 50 10 50 Quality tests performed 544,000 12 20 32 shipping order processed 195.000 60 THAL overhead 140 Required: a. How much overhead will be assigned to each product if these three cost drivets are used to allocate overhead? What is the total cost per unit produced for each product? b. How much overhead wit be assigned to each product #direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product