#2,10

10 point Sked Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008. a basic reel and the M-123. a new and improved version Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent months, manufacturing overhead was $351,200. During that time, the company produced 14.700 units of the M 008 and 2.900 units of the M-123. The direct costs of production were as follows. H-008 M-123 Total Direct materials $117,600 $116,000 $233,600 Direct labor 117,600 58,000 175,600 BOOK Rece Management determined that overhead costs are caused by three cost drivers. These drivers and the costs for last year were as follows Cost Driver Number of machine hours Number of production runs Number of inspections Total overhead Costs $178,200 80,000 93.000 $351,200 Activity level M-008 M-123 8,000 2,000 10 30 25 25 Total 10,000 40 50 Required: 6. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much of the overhead will be assigned to each product of direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product