Richardson Electronics produces video games in three market categories commercial, home, and miniature Richardson 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 $ 774,400 Indirect labor wages, supplies, factory utilities, machine maintenance Machine hours Batch 526,000 Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Number of production orders Product 210,400 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 $ 36 10 unit $ 23 90 unit $ 29 20 unit Direct labor cost $ 14 20 hour $ 14 20 hour $ 18 50 hour Number of labor hours 6,800 11,700 1,600 20,100 Number of machine hours 12,000 45,000 31,000 88,000 Number of production orders 280 1,800 520 2,600 Research and development time 12 21 67 100 Number of units 15,000 50,000 14,000 79,000 Square footage 19,000 49,000 17,000 85,000 A 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 (Round intermedi ate calculations and Cost per unit answers to 2 decimal places Round Total cost to the nearest dollar amount )

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

Richardson Electronics produces video games in three market categories: commercial, home, and miniature. Richardson 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	$	774,400	Indirect labor wages, supplies, factory utilities, machine maintenance	Machine hours
Batch		526,000	Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling	Number of production orders
Product		210,400	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	$	36.10	/unit	$	23.90	/unit	$	29.20	/unit
Direct labor cost	$	14.20	/hour	$	14.20	/hour	$	18.50	/hour
Number of labor hours		6,800			11,700			1,600			20,100
Number of machine hours		12,000			45,000			31,000			88,000
Number of production orders		280			1,800			520			2,600
Research and development time		12	%		21	%		67	%		100	%
Number of units		15,000			50,000			14,000			79,000
Square footage		19,000			49,000			17,000			85,000
A. 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. (Round intermediate calculations and "Cost per unit" answers to 2 decimal places. Round "Total cost" to the nearest dollar amount.)