PART 2 direct materials costs were as follows: Cost bicycles and the other is a high-grade product for home and car use. The touring bicycles' CDs are Quality Sound Corporation produces two types of compact discs (CDs), one is to install on touring designed for durability rather than accurate sound reproduction Management believes the accounting system may not be accurately allocating costs to products. Management asked you to investigate the cost allocation problem. You found that manufacturing overhead is currently assigned based on the direct labor costs in the products. For your investigation, you are using data from last year. Last year's manufacturing overhead was $440,000 based on production of 320,000 touring bicycle CDs and 100,000 high-grade CDs. Direct labor and Direct Labor Touring Bicycle High Grade Total Direct materials $ 180,000 $ 60,000 S 240,000 $ 112,000 $ 232,000 Management believes three activities cause overhead costs. The cost drivers and related costs for your analysis are as follows: ACTIVITY LEVEL Cost Drivers Cost Touring High Total Assigned Bicycle Grade # of production runs 40 runs $ 200,000 10 runs 50 runs # of quality tests performed $ 180,000 12 tests 18 tests 30 tests # of shipping orders processed $ 60,000 100 orders 50 orders 150 orders Required 1. How much of the overhead would be assigned to each product if the three cost drivers are used to allocate overhead? What would be the cost per unit (including materials, labor, and overhead) for each product if overhead is assigned to products using the three cost drivers? 2. How much of the overhead would be assigned to each product if direct labor costs had been used as the basis for allocating overhead to each product? What would be the cost per unit (including materials, labor, and overhead) for each product if overhead is allocated to products using direct labor cost as the allocation base? PART 4 Bethlehem Corporation processes input OAK into three outputs: Mic, Rap, and Don. At the split-off balance. The joint costs total $365,500. If Don is accounted for as a by-product, its net realizable point, Mic results in 60% of the net realizable value, Rap results in 30%, and Don accounts for the value at split-off of $37,600 is recognized at time of production. Required: How much of the total joint cost is allocated to the products? (Show your computation)