Tameron Corporation produces video games in three market categories: commercial, home line, and miniature handheld. Tameron has traditionally allocated overhead costs to the three product categories using the companywide base of direct labor hours. The company recently switched to 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 cost pools and drivers shown in the following spreadsheet. The activity in each of the three product lines appears in rows 3 to 9. The pooled costs are shown in cells E11 to E15.
Required
Construct a spreadsheet like the following one to compute the total cost and cost per unit for each product line. Cells K4 to K9, G12 to I15, E19 to E28, G19 to G28, I19 to I28, and K26 should all be formulas.

Transcribed Image Text:

Driver Labor hours Commercial Home Line Miniature Total 20,000 80,000 3,000 100% 4,000 23,000 860 67% 5,000 13,000 340 15% 11,000 44,000 1,800 Machine hours * Production orders R8D time 18% Unts 14,000 20UUU 44,000 17,000 75,000 100,UUU Sq tootage mn'ns mn'ne Pooled Cost $ 620,000 327,000 185,000 530,000 $1,662,000 Cost type Total Activity E0,000 3,000 100% Pool Rate 7.75 per mh $ 109.00 per order $ 185,000 timss % 5.30 per sq. it. Unt level Batch level Product level Facity level 100,000 Product Cost: Commercial $30 $ 420,000 $20 $ 8E0,000 $25 $ 425,000 12 Miniature Total Home Line Drect materials cost Drect labor cost 000'0g 100,750 37,060 27,750 106,000 $ 751,580 12 132,000 15 60,000 Alocated overhead 178,250 93,740 123,950 159,000 $1,039,940 Unt-level 341,000 196,200 3,300 265,000 $1,847,500 Batch-level Product-level Facilty-level Total cost $3,639,000 53.68 41.99 Cost per unit 61.17