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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 reel, 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 $315,200. During that time, the company produced 13,700 units of the M-008 and 2,400 units of the M-123. The direct costs of production were as follows M-008 M-123 $109.600%96.000 Totsl $ 205,600 Direct materials Direct labor 57,600 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows: Cost Driver Costs M-006 M-123 Total 139,700 80D 2.000 10.000 Number of production rus Number of inspecions Total overhead 30 40 80,000 20 60 5 315,200 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? (Round your intermediate calculations and final answers to 2 decimal places.) Answer is complete but not entirely correct. -008 M-123 Total 194 0 27.94 63.17 23 17 Total unit b. How much of the overhead will be assigned to each product if direct labor cost is usecd to allocate overhead? What is the total cost per unit produced for each product? (Round "Total unit cost" to 2 decimal places.) Answer is complete but not entirely correct M-1 6 4 3200 $ 100.000 Total unit

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