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Dosktown Products msnufoctures fishing equ'pment for recreationsl uses. The Miramichi plant produces the compsny's two versions of a special reel used for river fishing. The
Dosktown Products msnufoctures fishing equ'pment for recreationsl uses. The Miramichi plant produces the compsny's two versions of a special reel used for river fishing. The two models are the M-00g, a bosic ree,, and the M123, a new and improved version. Coat sccountents at compeny hesdqusrters heve prepered costs for the two reels for the moat recent perlad. The plant mansger ls concerned. The cost report does nat colncide with her Intultion about the relative costs of the two models. She has asked you to review the cost sccounting and help her prepore s response to hesdquarters. Manufacturing overhesd is currently sasigned to products based on their direct labor costs. For the most recent manth, manufiscturing averhesd wss $344,800. During that time, the company produced 14,800 unis: of the M009 and 2,700 unlts of the M-123. The direct costs of production were es follows. Mansgement determined that averhesd costs are csused by three cost drivers. These drivers and thelr costs for last yesr were ss follows. Required: a. How much averhesd wil be assigned to esch product if these three cost drivers are used to sllocate overhesd? What is the tatal cost per unit produced for each product? b. How much of the overhesd will be sasigned to esch product if dilect lsbor coat is used to allocate overhesd? What is the totel cost per unit produced for each product? Complete this question by entering your answers in the tabs below. How much overhesd will be assigned to esch product if these three cost drivers are used to allocate overhesd? What is the tatal cost per unit produced for each product? (Found "Total unit const" to 2 dedimal plsces.) Complete this question by entering your answers in the tabs below. How much of the overhead will be assigned to each product if direat isbor cost is used to allocate owerhead? What is the total cost per unit produced for esch product? (Found "Tatal unit const" to 2 decimal plsces.)
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