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Saved Help Save & Exit Submit Check my work 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 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 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 $1.375,000 based on production of 320,000 handheld consoles and 109,000 home consoles Direct labor and direct materials costs were as follows. Handheld Direct labor $1,340,750 $1,718,750 Materials 790,000 Total Home $378,000 707.000 1,497.000 Management has determined that overhead costs are caused by three cost drivers. These drivers and their costs for tast year are as follows Cost Driver Number of production runs Quality tests performed Shipping orders processed Total overhead Costs Assigned $630,000 576,000 169.000 $1,375,000 Activity Level Handheld Home 35 10 13 10 BO 50 Total 45 32 130 Required: a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total rns nerunit redure for each nonduct? 090 1.07 M SAMSUNG