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Exercise 9.43 (Algo) Activity-Based versus Traditional Costing (LO 9-4,5,6) Maglie Company manufactures two video game consoles handheld and home. The handheld consoles are smaller and less expensive than the home consoles. The company only recently began producing the home model. Since the introduction of the new product profits have been steadly declining Management believes that the accounting system is not accurately allocating costs to products, particularly because sales of the new product have been increasing Management has asked you to investigate the cost allocation problem you find that manufacturing overhead is currently assigned to products based on their direct labor costs. For your investigation, you have data from fast year. Manufacturing overhead was $1220.000 based on production of 300,000 handheld consoles and 116,000 home consoles Direct labor and direct materials costs were as follows Direct labor 51,113,000 5413,000 0.000 $1,525,000 1,420,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year areas follow Tota! stort er of production rum Quality test performed Shaping process Total Cast Asian $ 500.000 570,000 170, 11,220,000 Activity Love held 35 5 36 120 So 30 170 Required How much overhead will be assigned to each product these the cost oversed to locate overhead What is the total cost per unit produced for each product

beto O il DELL FO F10 CE MER Dalar vor 35 96 E R T P F G H K V B N M Alt Curt Saeed Total overhead $1,220,000 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product? b. How much overhead will be assigned to each product it direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? Complete this question by entering your answers in the tabs below. Required Required How much overhead will be assigned to each product of direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? (Do not round intermediate calculations. Round Total cost per unit to 2 decimal places) Overhead Total Cost pe Unit Handheld More (Required A En Std> O c ID DELL F10 F11 112 priser $ 4 3 26 5 & 7 6 8 9 0 E R T Y C C o D F G H K L ver

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