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value: 1.50 points 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 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 $1,183,000 based on production of 300,000 handheld consoles and 85,000 home consoles. Direct labor and direct materials costs were as follows Home $1,090,750 388,000 $1,478,750 Total Direct labor Materials 740,000 1,421,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows: Level Costs Assigned Handheld Home 10 Total Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead S 480,000 493,000 30 12 90 40 29 150 60 $1,183,000 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.) 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.) Answer is complete and correct. Total Cost per Unit Overhead Handheld 8.40 $690,000 $ $493,000 $ Home 18.38 b. How much overhead will be assigned to each product if 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.) Answer is complete but not entirely correct. Total Cost per Unit Handheld Home Overhead $961,527 x S $ 221,473 x S 9.31 15.00

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