Rodent Corporation produces two types of computer mice, wired and wireless. The wired mice are...

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Accounting

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Rodent Corporation produces two types of computer mice, wired and wireless. The wired mice are designed as low-cost, reliable input devices. The company only recently began producing the higher-quality wireless model. Since the introduction of the new product, profits have been steadily 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 last year. Manufacturing overhead was $1,358,000 based on production of 290,000 wired mice and 120,000 wireless mice. Direct labor and direct materials costs were as follows Wired Wireless Total Direct labor $1,063,000 $415,000 $1,478,000 Materials 790,000 706,000 1,496,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows: Activity Level Cost Driver Number of production runs Quality tests performed Shipping orders processed Costs Assigned Wired Wireless Total $ 700,000 493,000 165,000 40 12 90 50 29 150 10 60 Total overhead $1,358,000 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? (Round "Total Cost Per Unit" to 2 decimal places.) Overhead Total Cost Per Unit Wired Wireless

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