Exercise 9-43 (Algo) Activity-Based versus Traditional Costing (LO 9-4,5,6) Maglie Company manufactures two video game consoles handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home mode. Since the introduction of the new product, profits have been steadily declining Management believes that the sccounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem. You find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have dets from last year. Manufacturing overhead was $1,353.000 based on production of 320,000 handheld consoles and 92.000 home consoles Direct Isbor and direct materials costs were as follows Handheld Total Direct labor $1,388,25 $383,80 $1,601,0 Materials 730,00 660,00 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year ares: follows Activity Love Cost Driver Costs Assigned Handeld Total Number of production runs $ 650,000 48 1a sa Quality tests performed 18 31 Shipping orders processed 176,80 sa 16 Total overhead $1,353,000 11 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? b. How much overeed will be signed to esch productif direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product! Complete this question by entering your answers in the tabs below. Required A Required 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 "Total Cost per unit' to 2 decimal places.) Overhand Total Cost per Unit Handheld Home Required Required B > Complete this question by entering your answers in the tabs below. Required faquired | How much 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? (Do not round Intermediate calculations. Round "Total cost per unit" to 2 decimal places.) Overhead Total Cost per Unit Handheld Home