Campbell Electronics produces video games in three market categories: commercial, home, and miniature. Campbell 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		Total Pooled Cost			Types of Costs	Cost Driver
Unit		$	737,100		Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch			830,900		Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product			210,400		Research and development	Time spent by research department
Facility			478,400		Rent, general utilities, maintenance, facility depreciation, admin. salaries	Square footage

Additional data for each of the product lines follow:

Commercial

Home

Miniature

Total

Direct materials cost

$

35.80

/unit

$

24.10

/unit

$

29.50

/unit

Direct labor cost

$

14.10

/hour

$

14.10

/hour

$

17.50

/hour

Number of labor hours

6,600

12,200

2,900

21,700

Number of machine hours

11,000

43,000

27,000

81,000

Number of production orders

230

1,800

1,070

3,100

Research and development time

13

%

18

%

69

%

100

%

Number of units

17,000

43,000

16,000

76,000

Square footage

20,000

47,000

25,000

92,000

Required

1. 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.

2. 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	total cost	cost per unit
a.	commercial
	home
	miniature
	combined total	$
b.	commercial
	home
	miniature
	combined total	$