# 550400 for handheld and home respectively the total

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\$550,400 for Handheld and Home, respectively. The total cost per unit is the total cost per product divided by the total units produced; \$100.00 per handheld console and \$167.40 per home console. b. Rate Handheld Home Total Direct labor a \$1,160,400 \$ 439,600 \$1,600,000 Direct materials b 750,000 684,000 1,434,000 Total overhead 90% c 1,044,360 d 395,640 1,440,000 Total costs \$2,954,760 \$1,519,240 \$4,474,000 Total unit cost \$105.53 e \$151.92 a Data given in the first table in the exercise. b Data given in the first table in the exercise.
c 90% = \$1,440,000 total overhead ÷ \$1,600,000 total direct labor. d \$1,044,360 = \$1,160,400 0.90 e \$105.53 = \$2,954,760 ÷ 28,000 units produced (rounded). From the table above, total overhead allocated to Handheld and Home is \$1,044,360 and \$395,640 respectively. The unit cost for Handheld and Home is \$105.53 and \$151.92 respectively. c. By allocating overhead on the basis of direct labor, Maglie has been understating the cost to manufacture home consoles thereby overstating the profits on that model.