Fenway Electronics produces video games in three market categories: commercial, home, and miniature. Fenway 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: gints eBook Category Unit Totat Pooled Cost $360,000 194,400 Print Batch 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 Cost Driver Machine hours Number of production orders Time spent by research department Square footage References Product Facility 105,600 300,000 Additional data for each of the product lines follow: Total 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 $ 25.00/unit $ 10.00/hour 6,000 10,000 200 101 15,000 20,80 Home $ 15.00/unit $ 8.00/hour 12.000 45,000 2,880 201 45,000 50,000 Miniature $ 12.00/unit $9.00/hour 2,080 25,000 800 70% 14,000 30,000 20,000 80,000 3,000 1005 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, Next >