-9 Class Problems - Company manufactures two video game consoles handheld and home. The handheld comes are water and less sive than the home consoles. The company only recently began producing the home model. Since the wroduction new product, profits have been steadily declinine Manuement believes that the countie wystem is not accurately ing costs to products, particularly because sales of the new product ve been increase ement has asked you to investigate the cost allocation problem. You find that wheturing extend is currently d to products based on their direct labor costs. For your investigation, you have data from year Manufacturing od was $1.440.000 based on production of 20.000 handheld consoles and 10.000 krome consoles Direct labor and materials costs were as follows Handheld Home Total Direct labor $1360,400 $439,500 $1,600,000 Materials 750.000 684,000 1434.000 ment has determined that overhead costs are caused by three cost drivers. These drivers and their costs for last as follows Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Activity Level Costs Assigned Handheld Home Total $ 660.000 40 10 50 594.000 12 18 30 186 000 100 50 150 $1.440,000 zich overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is cost per unit produced for each product? uch overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total unit produced for each product? eht the results from using activity-based costing in requirement (a) help management understand Maglie's e profits