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3 Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company's two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters. 28 Ints Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $301,600. During that time, the company produced 13,100 units of the M-008 and 2,300 units of the M-123. The direct costs of production were as follows. eBook Print M-008 $104,800 104, 800 Direct materials Direct labor M-128 $ 92,000 46,000 Total $196,800 150, 800 References Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows. Activity Level M-008 M-123 Total cost Driver Number of machine-hours Number of production runs Number of inspections Total overhead Costs $120,600 90,000 91,000 $301,600 Required A Required B 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 unit cost" to 2 decimal places.) M-008 M-123 Total overhead Total unit cost RELE Required B LILLE Required A Required B How much of the 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? (Round "Total unit cost" to 2 decimal places.) M-008 M-123 Total overhead Total unit cost

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