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Doaktown Products manufactures tishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used tor river tishing. The
Doaktown Products manufactures tishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used tor river tishing. The two models are the M-008, a basic reel, and the M-123, a new and improved v company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concemed 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 response to headquarters. Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $327 2DD. During that time, the company produced 13,700 units of the M-008 and 2,700 units of the M-12 were as follows Direct materials Direct labor S109,600 S108.000 54.000 Total 217,600 163,600 109,600 Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Level 008 M-1 Cost Driver Costs Total Number of production runs Number of Inspections Total overhead S 164,700 000 9,000 10,000 40 65 O 000 92,500 S 327 200 30 35 30 a. How much overnead will be assigned to each product it these three cost drivers are used to allocate overhead? What is the total cost per unit produced tor each produc1? (Round your intermediate calculations and final answers to 2 decimal places M 000 M-1 Total ovarhead$ 3,157 778 00 Total unit cost $ 232.05 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.) Total overhead Total unit cost
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