Perez Electronics produces video games in three market categories commercial, home, and miniature Perez 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 $ 613,200 Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours Batch 769,600 Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling Number of production orders Product 210,200 Research and development Time spent by research department Facility 459,000 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 $ 37 00 unit $ 24 40 unit $ 30 40 unit Direct labor cost $ 14 40 hour $ 14 40 hour $ 17 30 hour Number of labor hours 5,900 11,100 2,000 19,000 Number of machine hours 14,000 46,000 13,000 73,000 Number of production orders 250 2,000 850 3,100 Research and development time 14 21 65 100 Number of units 16,000 46,000 15,000 77,000 Square footage 21,000 50,000 19,000 90,000 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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Perez Electronics produces video games in three market categories: commercial, home, and miniature. Perez has traditionally allocated overhead costs to the three products using the

Perez Electronics produces video games in three market categories: commercial, home, and miniature. Perez 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	$	613,200	Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch		769,600	Materials handling, inventory storage, labor for setups,packaging, labeling and shipping, scheduling	Number of production orders
Product		210,200	Research and development	Time spent by research department
Facility		459,000	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	$	37.00	/unit	$	24.40	/unit	$	30.40	/unit
Direct labor cost	$	14.40	/hour	$	14.40	/hour	$	17.30	/hour
Number of labor hours		5,900			11,100			2,000			19,000
Number of machine hours		14,000			46,000			13,000			73,000
Number of production orders		250			2,000			850			3,100
Research and development time		14	%		21	%		65	%		100	%
Number of units		16,000			46,000			15,000			77,000
Square footage		21,000			50,000			19,000			90,000

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.)