A. 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 will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product? **Title: Cost Allocation Investigation for Magle Company’s Video Game Consoles****Overview:**Magle Company produces two types of video game consoles: handheld and home. The handheld consoles are smaller, less expensive, and recently introduced. Following the launch of the new home model, profits have risen steadily. However, concerns have arisen regarding the accurate allocation of costs to products, given increasing sales and the production of new models.**Manufacturing Overhead Analysis:**Currently, manufacturing overhead is assigned to products based on direct labor costs. Below is the data from the previous year:- **Total Manufacturing Overhead:** $1,440,000- **Production Details:** - 28,000 handheld consoles - 10,000 home consoles**Cost Breakdown:**| | Handheld | Home | Total ||-------------------------|-------------|-----------|------------|| **Direct Labor** | $319,600 | $600,400 | $920,000 || **Materials** | $750,000 | $684,000 | $1,434,000 |**Overhead Cost Drivers:**The management identified that overhead costs are driven by three main cost drivers. Their costs for the previous year break down as follows:| **Cost Driver** | **Cost Assigned** | **Activity Levels** ||--------------------------|-------------------|---------------------|| | | 1 = Handheld || | | 2 = Home || | | Total || Setup of production runs | $640,000 | 100 | 50 | 150 || Number of orders | $400,000 | 200 | 100 | 300 || Machine hours | $400,000 | 120,000 | 80,000 | 200,000 |**Requirements for Analysis:**1. Determine the amount of overhead allocated to each product if specific cost drivers are used for allocation. Calculate the total cost per unit produced for each product.2. Assess the overhead allocation using direct labor costs to allocate overhead. Determine the total cost per unit for each product.**Instructions for Cost Analysis:**To complete this analysis, we need answers calculated based on the data provided. The table in the analysis will include spaces for entering computed allocations and unit costs. Upon completion, these calculations will offer insights into

Name: A. How much overhead will be assigned to each product if these three c
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: A. 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 will be assigned to each product if direct labor cost is