4 16.66 points Skipped Maglie Company manufactures two video game consoles: handheld and home. The handheld consoles are smaller and less expen 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 $1,379,000 based on production of 330,000 handheld consoles and 94,000 home consoles. Direct labor and direct materials costs were as follows. eBook Mc Graw Direct labor Materials Handheld $1,314,750 750,000 Hone $409,000 699,000 Total $1,723,750 1,449,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows. Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead $ 605,000 Costs Assigned Activity Level Handheld Hone Total 45 10 55 576,000 198,000 $1,379,000 13 19 32 120 60 180 Required: a. 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 overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B 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? (Round "Total Cost per Unit" to 2 decimal places) Overhead Total Cost per Unit 4 Materials $1,125,7 750,000 699,000 1,449,000 66 Ints Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for follows. Skipped eBook Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Activity Level Costs Assigned Handheld Home Total $ 605,000 576,000 198,000 $1,379,000 45 10 55 13 19 32 120 60 180 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? Wha cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the to produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B 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? (Round "Total Cost per Unit" to 2 decimal places.) Overhead Total Cost per Unit Handheld Home ped ook Direct labor Materials Handheld $1,314,750 750,000 Home $409,000 699,000 Total $1,723,750 1,449,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for follows. Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Activity Level Costs Assigned Handheld Home Total $ 605,000 576,000 198,000 $1,379,000 45 13 19 120 60 228 10 55 32 180 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? Wha cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the to produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round "Total cost per unit" to 2 decimal places.) Total Cost per Overhead Unit Handheld Home