Answer:
total overhead allocated to handheld consoles = $889,600
total overhead allocated to home consoles = $550,400
Explanation:
since management has determined that overhead costs must be allocated based on 3 cost drivers, then we should assign:
production runs overhead total
handheld consoles 40/50 $660,000 $528,000
home consoles 10/50 $660,000 $132,000
total 50/50 $660,000
quality tests overhead total
handheld consoles 12/30 $594,000 $237,600
home consoles 18/30 $594,000 $356,400
total 30/30 $594,000
shipping orders overhead total
handheld consoles 100/150 $186,000 $124,000
home consoles 50/150 $186,000 $62,000
total 150/150 $186,000
total overhead allocated to handheld consoles = $528,000 + $237,600 + $124,000 = $889,600
total overhead allocated to home consoles = $132,000 + $356,400 + $62,000 = $550,400
