Baird Electronics produces video games in three market categories: commercial, home, and miniature, Baird 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: Unit Total Pooled Coat $830,000 Cost Driver Machine hours Batoh 741,800 Types of coats 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 Number of production orders Product Facility 210,200 496,800 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 unita Square footage Commercial $35.90/unit $13.70/hour 6,500 13,000 230 140 10,000 24,000 $ 25.00/unit $ 13.70/hour 11,900 47.000 2.100 214 42,000 53,000 Miniature 29.20/unit $18.90/hour 2,700 23,000 570 658 17.000 15,000 21,100 83,000 2.900 1000 77.000 92,000 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. (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 Total Direet 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 $ 35.90/unit $ 13.70/hour 6,500 13,000 230 148 18,000 24,000 Home 25.00/unit $13.70/hour 11,900 47,000 2,100 218 42,000 53,000 Miniature $29.20/unit $18.90/hour 2,700 23,000 570 650 21,100 83,000 2,900 1008 77,000 92,000 17,000 15,000 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. (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 Commercial Home Miniature Combined total Commercial Miniature Corbined total
