Homework 9 Chapter 9 Help Save & Exit Submit 4 30 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 model. Since the introduction of the new product, profits have been steadily declining Management believes that the accounting 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 to from last year, Manufacturing overhead was $1257,000 based on production of 280,000 handheld consoles and 95.000 home consoles Direct labor and direct materials costs were as follows. Handheld Hone Total Direct labor 51, 163,250 $400,000 $1.571,258 Materials 700.088 690.000 1.300,00 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows Activity level Cost Driver costs assigned Handheld Home Total Nunber of production runs $ 495,00 35 10 45 quality tests performed 594,000 14 19 33 Shipping orders processed 168,000 90 50 14 Yotal overtad 31,257,000 Required: a. How much overhead will be assigned to each product of these three cost drivers are used to locate overhead? What is the total cost per unit produced for each product? b. How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per un produced for each product? Complete this question by entering your answers in the tabs below Required Heute POCA Menoch. Cena Mtech- Homework 9 Chapter 9 Help Save Sum Total 4 Kost Driver of reduction Quality test perford Shining or processed total overhead ACTIVITY 25 14 CA 495,00 594,000 160.000 to 19 33 14 30 Required: How much overhead will be signed to each product in these the convere are used to allocate overhead? What is the total cost per un produced for each product? b. How much overhead will be assigned to each product it orect labor cout is used to allocate overhead? What is the total cost per unit product? Complete this question by entering your answers in the tabs below lo Reed A Hood How much overhead will be assigned to each product these tretcost drivers are used to allocate overhead? What is the total cost per unit produced for each product and Total Cost perts 2 dedma l Over Tala Cost UNE Handheld me Red