Fanning Electronics produces video games in three market categories: commercial, home, and miniature. Fanning 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 Unit Batch $380,000 209,400 Product Facility 110,600 305,000 Types of Costs Indirect labor wages, supplies, factory utilities, machine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rent, general utilities, maintenance, facility depreciation, admin. salaries Additional data for each of the product lines follow: Direct materials cost Direct labor cost Number of labor hours Number of machine hours. Number of production orders Research and development time Number of units Square footage Commercial $ 25.05/unit $10.25/hour Hone $15.05/unit $ 8.25/hour Cost Driver Machine hours Number of production orders Time spent by research department Square footage Miniature $12.05/unit Total $9.25/hour 6,000 12,000 2,000 20,000 10,000 45,000 25,000 80,000 200 2,000 800 3,000 10% 20% 70% 100% 15,000 120,000 45,000 50,000 14,000 30,000 74,000 100,000 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.