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 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 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 $

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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

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

100

Number of units

17,000

43,000

16,000

76,000

Square footage

20,000

47,000

25,000

92,000

Required

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.
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.