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

$$1,192,000$ based on production of $320,000$ handheld consoles and $101,000$ home consoles. Direct labor and direct materials costs

were as follows.

Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as

follows.

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.

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? $($Round "Total Cost per Unit" to $2$ decimal places.$)$