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Maglie Company manufactures two video game consoles handheld and home

Accounting

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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 belleves 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 $1,289,000 based on production of 340.000 handheld consoles and 98.000 home consoles Direct labor and direct materials costs were as follows Handheld Total Direct labor $1,224,250 $387,000 $1,611,250 700,000 1,411,000 Home Materials 711,000 Management hos determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year are os follows Cost Driver Number of production runs Quality tests performed Shipping orders processed Yotal overhead Costs Assad $ 600,000 442,000 117,000 31,289,00 Activity tovel Handheld Home 45 15 10 16 110 60 Total 60 26 170 Required 6. 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 wd be assigned to each product of direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? ed Required: a. How much overhead will be assigned to each product if these three cost drivers are used to alloca 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 overhe produced for each product? Complete this question by entering your answers in the tabs below. Required A Required B ces How much overhead will be assigned to each product if direct labor cost is used to allocate overhead? What per unit produced for each product? (Do not found intermediate calculations. Round "Total cost per unit" to 2 Overhead Total Cost per Unit Handheld 979,382 8.54 Home $ 309,618 ? S 14.36