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Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing The

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Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing The two models are the M-008, a basic reet, and the M. 123. a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $303 200. During that time, the company produced 13,200 units of the M-008 and 2.300 units of the M-123. The direct costs of production were as follows Direct materials Direct labor H-208 H-123 $105.60 $ 92,000 105,600 46,000 Yotal $ 197,600 151,600 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows Activity level Cost Driver Costs M- H-123 Total Number of machine-hours 5122,200 5,00 2.000 10.000 Number of production runs 50.00 20 20 40 Number of inspections 91.000 25 25 50 Total overhead 5303,200 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 of the 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? 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 unit cost to 2 decimal places.) M.008 M-123 Total overhead Total unit cost Regulad Required B > Required A Required B How much of the 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? (Round "Total unit cost" to 2 decimal places.) M 008 M-123 Total overhead Total unit cost

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