magalie company manufactures two video games

z Saved Help Save & E 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 data from last year Manufacturing overhead was $1154,000 based on production of 350,000 handheld consoles and 91,000 home consoles Direct labor and direct materials costs were as follows. Direct labor Materials Handheld $1,042,500 770.000 Home $400,000 684,000 Total $1,442,500 1,454,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year areas follows: Cost Driver Thamber of production runs Quality tests performed Shipping order processed Total overhead Conts Assigned 5440,000 527,000 107.000 $1.154,000 Activity Level Handheld 35 S 13 18 120 50 Total 40 31 170 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate 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 unit Prev 1 of 4 : Next > Seved Help Save & Exit Submit Muay Shipping orders processed Total overbead Jovu 187.000 $1,154,000 23 120 50 170 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate 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 unit produced for each product? Complete this question by entering your answers in the tabs below. Required A Required How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product7(Round "Total Cost per Unit to 2 decimal places) Overhead Total Cost per Unit Handheld Home Required 8 > Prov 1 of 4 !!! Next > MacBook Air 120 50 170 Shipping orders processed Total overhead 187,000 $1,154,000 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate 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 unit produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B How much overhead will be assigned to each product direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round Total cost per unit to 2 decimal places..) Overhead Total Cost per Unit Handheld Home MacBook Air