Rundle Electronics produces video games in three market categories: commercial, home, and miniature. Rundle 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 Unit Total Pooled Cost $678,900 Cost Driver Machine hours Batch 465,200 Types of costs Indirect labor wages, supplies, factory utilities, sachine maintenance Materials handling, inventory storage, labor for setups, packaging, labeling and shipping, scheduling Research and development Rant, general utilities, maintenance, facility depreciation, admin. salaries Number of production orders Product Facility 210.800 574.200 Time spent by research department Square footage Additional data for each of the product lines follow: Total Commercial $36.90/unit $14.30 /hour Direct materials cost Direct labor cost Number of labor hours Number of machine hours ber of production orders Research and development time ber of units Square footage 6.600 Home $23.90/unit $ 14.30 /hour 11.100 48.000 2,200 Miniature $30, 70/unit $ 18.00/hour 1,400 11.000 16.000 200 141 15,000 17.000 19, 100 73,000 3,100 44,000 54,000 670 16.000 28.000 73.000 99.000 Required a. 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 b. 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 Required a. 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. b. 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.) Total Cost Cost per Unit Type of Product Commercial Home Mature Combined Commercial Home Mine Condo
