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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

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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 $1,367,000 based on production of 290,000 handheld consoles and 84,000 home consoles Direct labor and direct materials costs were as follows Handheld $1,298,750 $410,000 Materials 673,000 1,463,000 Home Total $1,208,750 Direct labor 790,000 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 $385,000 544,000 238.000 $1,367,000 Activity Level Handheld Home 30 15 13 19 120 50 Total 45 32 170 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 of 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 Unit" to 2 decimal places.) Overhead Total Cost per Unit Handheld Homo Required B > Complete this question by entering your answers in the tabs below. Required A Reqqired 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? (Do not round intermediate calculations. Round "Total cost per unit" to 2 decimal places.) Overhead Total Cost per Handheld Home Unit Required A

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