Munoz Electronics produces video games in three market categories commercial, home, and miniature Munoz has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours The company recently implemented an ABC system when it installed computer controlled assembly stations that rendered the traditional costing system ineffective In implementing the ABC system, the company identified the following activity cost pools and cost drivers Category Total Pooled Cost Types of Costs Cost Driver Unit $ 700,000 Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours Batch 404,300 Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling Number of production orders Product 210,600 Research and development Time spent by research department Facility 518,400 Rent, general utilities, maintenance, facility depreciation, admin salaries Square footage Additional data for each of the product lines follow Commercial Home Miniature Total Direct materials cost $ 36 40 unit $ 23 10 unit $ 30 60 unit Direct labor cost $ 14 90 hour $ 14 90 hour $ 19 10 hour Number of labor hours 5,100 11,400 2,400 18,900 Number of machine hours 18,000 46,000 6,000 70,000 Number of production orders 270 2,000 630 2,900 Research and development time 14 15 71 100 Number of units 19,000 47,000 18,000 84,000 Square footage 22,000 54,000 20,000 96,000 Required Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base Also determine the combined cost of all three product lines Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs Determine the combined cost of all three product lines (For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar Round Cost per Unit to 2 decimal places Round your answers for Total Cost to the nearest whole dollar amount )

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Munoz Electronics produces video games in three market categories: commercial, home, and miniature. Munoz has traditionally allocated overhead costs to the three products using the

Munoz Electronics produces video games in three market categories: commercial, home, and miniature. Munoz has traditionally allocated overhead costs to the three products using the companywide allocation base of direct labor hours. The company recently implemented an ABC system when it installed computer-controlled assembly stations that rendered the traditional costing system ineffective. In implementing the ABC system, the company identified the following activity cost pools and cost drivers:

Category	Total Pooled Cost		Types of Costs	Cost Driver
Unit	$	700,000	Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch		404,300	Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product		210,600	Research and development	Time spent by research department
Facility		518,400	Rent, general utilities, maintenance, facility depreciation, admin. salaries	Square footage

Additional data for each of the product lines follow:

	Commercial			Home			Miniature			Total
Direct materials cost	$	36.40	/unit	$	23.10	/unit	$	30.60	/unit
Direct labor cost	$	14.90	/hour	$	14.90	/hour	$	19.10	/hour
Number of labor hours		5,100			11,400			2,400			18,900
Number of machine hours		18,000			46,000			6,000			70,000
Number of production orders		270			2,000			630			2,900
Research and development time		14	%		15	%		71	%		100	%
Number of units		19,000			47,000			18,000			84,000
Square footage		22,000			54,000			20,000			96,000

Required

Determine the total cost and cost per unit for each product line, assuming that overhead costs are allocated to each product line using direct labor hours as a companywide allocation base. Also determine the combined cost of all three product lines.
Determine the total cost and cost per unit for each product line, assuming that an ABC system is used to allocate overhead costs. Determine the combined cost of all three product lines.

(For all requirements, round intermediate calculations for allocation rates to 2 decimal places and all other calculations to the nearest whole dollar. Round "Cost per Unit" to 2 decimal places. Round your answers for "Total Cost" to the nearest whole dollar amount.)