ed Rooney Electronics produces video games in three market categories: commercial, home, and miniature. Rooney 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 $575,100 Indirect labor wages, supplies, factory utilities, machine Machine hours maintenance Batch 641,400 Materials handling, inventory storage, labor for Number of production orders setups, packaging, labeling and shipping, scheduling Product 211.800 Research and development Time spent by research department Facility 471,700 Rent, general utilities, maintenance, facility depreciation, square footage admin. salaries Additional data for each of the product lines follow Total Miniature $ 30. 30/unit $ 19.00/hour Direct materials cost Direct labor cost Number of labor hour Number of machine hours Number of production orders Research and development time umber of units Square footage Commercial $36.90/unit $ 15.00/hour 5.500 18,000 210 115 20,000 Home $ 23.10/unit $ 15.00/hour 12.000 49.000 1,900 21% 19.000 71.000 12,000 890 68% 11,000 19,000 100% 69,000 50.000 Required a. 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. b. 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. a. 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. b. 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. (For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount.) Total Cost Cost per Unit Type of Product Commercial Home Miniature Combined total b. Commercial Home Miniature Combined total $ $
