Finch Electronics produces video games in three market categories commercial, home, and miniature Finch 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 $ 890,000 Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours Batch 611,500 Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling Number of production orders Product 210,600 Research and development Time spent by research department Facility 489,700 Rent, general utilities, maintenance, facility depreciation, admin salaries Square footage Additional data for each of the product lines follow Commercial Home Miniature Total Direct materials cost $ 35 20 unit $ 24 70 unit $ 29 60 unit Direct labor cost $ 14 90 hour $ 14 90 hour $ 18 50 hour Number of labor hours 6,000 12,200 2,000 20,200 Number of machine hours 14,000 41,000 34,000 89,000 Number of production orders 210 2,100 690 3,000 Research and development time 15 20 65 100 Number of units 12,000 42,000 11,000 65,000 Square footage 22,000 47,000 14,000 83,000 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 I NEED HELP WITH THE ONE WITH THE (XXXX) Type of Product Total Cost Cost per Unit a Commercial 1,165,800 97 15 Home 2,548,980 60 69 Miniature 580,600 52 78 Combined total $4,295,380 b Commercial 855,995 71 33 Home XXXXXXX 56 59 Miniature 1,062,735 96 61 Combined total $1,918,730

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Finch Electronics produces video games in three market categories: commercial, home, and miniature. Finch has traditionally allocated overhead costs to the three products using the

Finch Electronics produces video games in three market categories: commercial, home, and miniature. Finch 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	$	890,000	Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch		611,500	Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product		210,600	Research and development	Time spent by research department
Facility		489,700	Rent, general utilities, maintenance, facility depreciation, admin. salaries	Square footage

Additional data for each of the product lines follow:

	Commercial			Home			Miniature			Total
Direct materials cost	$	35.20	/unit	$	24.70	/unit	$	29.60	/unit
Direct labor cost	$	14.90	/hour	$	14.90	/hour	$	18.50	/hour
Number of labor hours		6,000			12,200			2,000			20,200
Number of machine hours		14,000			41,000			34,000			89,000
Number of production orders		210			2,100			690			3,000
Research and development time		15	%		20	%		65	%		100	%
Number of units		12,000			42,000			11,000			65,000
Square footage		22,000			47,000			14,000			83,000

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.

I NEED HELP WITH THE ONE WITH THE (XXXX)!!!

	Type of Product	Total Cost	Cost per Unit
a.	Commercial	1,165,800	97.15
	Home	2,548,980	60.69
	Miniature	580,600	52.78
	Combined total	$4,295,380
b.	Commercial	855,995	71.33
	Home	XXXXXXX	56.59
	Miniature	1,062,735	96.61
	Combined total	$1,918,730