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Exercise 9-41 (Algo) Activity-Based versus Traditional Costing ( LO 9-4, 5, 6) Asbury Cotfee Enterprises (ACE) manulactures two models of coffee grinders: Personal and Commercial.

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Exercise 9-41 (Algo) Activity-Based versus Traditional Costing ( LO 9-4, 5, 6) Asbury Cotfee Enterprises (ACE) manulactures two models of coffee grinders: Personal and Commercial. The Personal grinders have a smaller capocity and are less durablo than the Commercial grinders. ACE only recenty began producing the Commercial model Since the introduction of the new product, prolits have been steadily declining, olthough sales have been increasing. The management at ACE believes that the problem might be in how the accounting system alocates costs to products. The current system at ACE allocates manufacturing overheed to products based an direct labor costs. For the most recent yeat, which is representative. manufocturing overhesd toteled $2,077,500 based on production of 30,000 Personal grinders and 10,000 Commercial grinders. Direct costs were as follows: Management has determined that overhesd costs are cassed by theee cost drivers. These drivers and their costs for last year are as follows: Required a. How much overhead wat be assigned to eoch product if these three cost drivers are used to allocate everhead? What is the tota cost per unt produced for each product? b. How much ovethesd wall be ansigned to each preduct if direct isbor cost is used to allocate overhead? What is the total cost pet unit produced for each product? Complete this auestion by entering vour answers in the tabs below. Complete this question by entering your answers in the tabs below. How much overheed will be assigned to each product if these three cort drivers afe used to allocate gverhead? What is the fotal cost per unt produced for each product? Note: Round Tokal Cost per Unt" to 2 decimal places. Complete this question by entering your answers in the tabs below. Mow mach overhead will be arsigned to esch product if direct laber cost is sed to atiecate overhead? What is the total cout per unit produced for each prituct? fioses Round "Potal cont per Unit" to 2 declmal places

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