How much overhead will be assigned to each product if

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How much overhead will be assigned to each product if these three cost drivers are usedto allocate overhead? What is the total cost per unit produced for each product?(Round"Total Cost per Unit" to 2 decimal places.)b.How much overhead will be assigned to each product if direct labor cost is used toallocate overhead?What is the total cost per unit produced for each product?(Round"Total Cost per Unit" to 2 decimal places.)
6/6/2016Assignment Print View3/5$$$$OverheadTotal Costper UnitHandheld1,044,360105.53Home395,640151.92ReferencesWorksheetLearningObjective: 09­05Compute productcosts usingactivity­basedcosting.LearningObjective: 09­04 Explainhow activity­basedcosting and atwo­stageproductsystem arerelated.LearningObjective: 09­06Compare activity­based productcosting totraditionaldepartmentproduct costingmethods.Maglie Company manufactures two video game consoles: handheld and home. Thehandheld consoles are smaller and less expensive than the home consoles. The companyonly recently began producing the home model. Since the introduction of the new product,profits have been steadily declining. Management believes that the accounting system isnot accurately allocating costs to products, particularly because sales of the new producthave been increasing.Management has asked you to investigate the cost allocation problem. You find thatmanufacturing overhead is currently assigned to products based on their direct labor costs.For your investigation, you have data from last year. Manufacturing overhead was$1,440,000 based on production of 28,000 handheld consoles and 10,000 home consoles.

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Term
Spring
Professor
DeWayne
Tags
Cost Accounting, Harshad number

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