Adams Electronics produces video games in three market categories: commercial, home, and miniature. Adams 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 Unit Total Pooled Cost $783,000 Cost Driver Machine hours Batch 473, 100 Number of production orders Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rent, general utilities, maintenance, facility depreciation, admin. salaries Product Facility 211,100 493,000 Time spent by research department Square footage Additional data for each of the product lines follow: Total Direct materials cost Direct labor cost Number of labor hours Number of machine hours Number of production orders Research and development time Number of units Square footage Commercial $ 35.50/unit $ 14.20/hour 6,500 15,000 300 14% 10,000 18,000 Home $ 24.80/unit $ 14.20/hour 11,800 47,000 2,100 20% 46,000 52,000 Miniature $ 30.80/unit $ 17.30/hour 1,500 25,000 300 66% 9,000 15,000 19,800 87,000 2,700 100% 65,000 85,000 Required a. 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. b. 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. Type of Product Commercial $ Total Cost 1,090,800 2,476,560 451,650 4,019,010 Cost per Unit $ 109.08 53.84 50.18 Home Miniature $ b. Combined total Commercial Home Miniature Combined total