Maglie Company manufacturers 2 video games consoles: handled and home. the handle 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 the last year manufacturing overhead was1248000 based on production of 280,000 handled consoles and 102,000 home consoles. direct labor and direct materials costs were as follows Handled Home Total direct labor 1156000 404000 1560000 Materials 760,000 678,000 1438000 management has determined that overhead costs are caused by three course drivers. these drivers and their calls for the last year are as follows number of production runs 500,000 35 15 50 quality task perform 527,000 13 18 31 shipping orders processed 221,000 120 51 170 total overhead 1248000 1. How much overhead will be assigned to each product if these three cars drivers are used to allocate overhead? what is the total cost per unit produced for each product 2. how much overhead will be assigned to each product if they wreck labor costs is used to allocate overhead? What is the total cost per unit produced for each product elite lawn and plowing is a lawn and snow plowing service with both residential and commercial client. the owner believes that the commercial sector has more growth opportunities and is considering dropping the residential services 20 employees work a total of 44,000 hours last year 29,000 on residential jobs and 15,000 on commercial jobs. wages were $16 per hour for all work done any materials used are included in overhead as supplies all overhead is allocated on the basis of Labor hours worked which is also the basis of customer charges because of increased competition for commercial accounts EL&P can charge $35 per hour for residential work but only $29 per hour for commercial work 1. if overhead for the year was 124,590 what were the prots of the residential and Commercial Services using labor hours as the allocation base 2. overhead consists of costs of traveling to the site using equipment including vehicle rental and using supplies which can be traced as follower commercial residential traveling number of clients served 17,010 18 45 using equipment equipment hours 33,480 3100 2300 using supplies area service in square yards 74,100 110,000 80,000 total overhead 124,590 Main street ice cream company uses a plant wide allocation method to allocate overhead based on direct labor hours at a rate of $3 per labor hour. strawberry and vanilla flavors are produced in department SV. chocolate is produced in department C. Sven managers department SV and Charlene managers department C. the product cost per 1000 gallons follow Strawberry vanilla chocolate direct labor per 1000 gallons 751 826 1126 raw materials per 1000 gallons 801 501 601 1. if the number of hours of Labor per thousand gallons is 51 for strawberry, 56 for vanilla, and 100 for chocolate, compute the total cost of 1000 gallons of each avor using plantwide allocaticm 2. charlene's department uses older outdated machines. she believes that her department is being allocated some of the overhead of the department SV. which recently bought state of the art machines. after she requested the overhead costs be broken down by the apartment the following information was discovered The apartment SV department C overhead 100840 34740 machine hours 25,210 36,100 labor hours 25,210 18,000 Using machine hours as the department allocation base for the department SV and labor hours as the department allocation base for department C. 3. Compute the allocation rate for each hence for each flavor of ice cream using the department allocation rates computed in requirement B if the number of machine hours for 1000 gallons of each of the three flavors of ice cream are as follows strawberry 51 vanilla 56 and chocolate 151. direct labor hours by product remain the same as in requirement A The manager of the personnel department at city enterprises has been reading about time driven ABC and once to apply it to her department she has identified 4 basic activities her employees spent most of their time on interviewing hiring assessment and separation processing the department employs 18 staff who performs these activities the manager provides the following estimates for the amount of time it takes to complete each of the activities interviewing 58 minutes hiring 73 minutes assessment 101 minutes separation processing 103 minutes employees and personnel work 48 hours week with four weeks for vacation of the 48 hours five are reserved for administrative tax training and so on the cause of the personnel department including any allocated cost from other staff functions are 985,000 during the year personnel conducted 2500 interviews made 635 hires made 5600 assessment and had 315 separations what is the cost per minute for the activities in personnel what is the cost of interviewing and hiring one employee how many minutes of unused capacity did personnel have for the year what was the cause of the unused capacity in personnel