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

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Gibson Electronics produces video games in three market categories: commercial, home, and miniature. Gibson 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 Unit Total Pooled Cost $ 774,300 Cost Driver Machine hours Number of production orders 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 670,400 Product Facility 210, 380 514,100 Time spent by research department Square footage 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 $36.60/unit $ 15.40/hour 5,000 18,000 260 13% 16,000 22,000 Home $ 23.70/unit $ 15.40/hour 12,800 41,000 2,000 22% 46,000 45,000 Miniature $ 30.80/unit $ 18.10/hour 2,100 30,000 640 65% 15,000 30,000 19,900 89,000 2,900 100% 77,000 97,000 Required a. Determine the total cost and cost ner unit for each product in 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. (For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost to the nearest whole dollar amount.) Total Cost Cost per Unit 8 Type of Product Commercial Home Miniature Combined total Commercial Home Miniature Combined total b

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