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CoursHeroTranscribedText: Ex 9-43 0 Saved Check my work mode : This shows what is correct or Incorrect for the work y 1 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, prots 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 nd 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 $1,259,000 based on production of 340,000 handheld consoles and 106,000 home consoles. Direct labor and direct materials costs were as follows. Handheld Home Total Direct labor $1,159,750 $414,000 $1,573,750 Materials 770,000 690,000 1,460,000 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 costs Assigned Handheld Home Total Number of production runs 5 605,000 45 10 55 Quality tests performed 459 , 000 10 .'l. 7 2 7 Shipping orders processed 195,000 110 40 150 Total overhead $1,259,000 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? I). 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? 9 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. - Req UirEd 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.) Handheld $ 927.880 9 0.40 0 $ 698.0009 13.61 0

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