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 $1,563,000 based on production of 300,000 handheld consoles and 119,000 home consoles Direct labor and direct materials costs were as follows Direct labor Materials Handheld $1,541,750 700,000 Home $412,000 713,000 Total $1,953, 750 1,413,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year areas follows Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Costs Assigned $ 340,000 580,000 143,000 $1,563,000 Activity Level Handheld Hone 50 10 12 17 90 50 Total ca 29 130 Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Costs Assigned 5 840,000 580,000 143,000 $1,563,800 Handheld 50 12 90 Home 10 17 40 Total 60 29 130 Required: o. 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 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 Otto 2 decimal places) Overhead Total Cost per Unit Handheld Home Number of production runs Quality tests performed Shipping orders processed Total overhead Costs Assigned $ 840,000 580,000 143,000 $1,563,000 Handheld 50 12 90 Home 10 17 40 Total 60 29 130 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 tobs below. Required A Required el 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? (Do not round intermediate calculations. Round Total cost per unit to 2 decimal places) Overhead Total Cost per Unit Handheld Home