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CoursHeroTranscribedText: 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 $1,639,000 based on production of 280,000 handheld consoles and 95,000 home consoles. Direct labor and direct materials costs were as follows. Handheld Home Total Direct labor $1,533,750 $415,000 $2,043,?50 Materials T10,000 573,000 1,383,000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are as follows. Act ivitE Level Cost Driver Costs Assigned Handheld Hurle Total Number of production runs $ 845,000 50 15 65 Qualityr tests performed 640,000 12 20 32 Shipping orders processed 154,000 90 50 140 Total warhead $1,639,000 Req u ired: 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 if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? 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 Cost per Unit" to 2 decimal places.) Handheld Home Required A Required 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.) Overhead Total Cost per Unit Handheld Home

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