Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-/20 E Current Attempt in Progress Bramble Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,630, and a new model the

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

-/20 E Current Attempt in Progress Bramble Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,630, and a new model the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2022 was as follows Question 1 of 1 c Chapter 17 Homework Traditional Costing Royale Majestic Direct materials 5640 $430 Direct labor (520 per hour) 120 100 Manufacturing overhead ($42.863 per DLH 257 214 Total per unit cost $1,017 5744 In 2022. Bramble manufactured 25.000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 542.863 per direct labor hour was determined by dividing total estimated manufacturing overhead of 58.572.600 by the total direct labor hours (200,000) for the two models. 0 E 200 TAL PL D M Gmail YouTube Chapter 17 Homework Question 1 of 1 K -/20 Under traditional costing, the gross profit on the models was Royale $613 ($1,630-$1,017) and Majestic $576 ($1.320-$744) Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model Before finalizing its decision, management asks Bramble's controller to prepare an analysis using activity based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2022. Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Purchasing Number of orders $1,414,000 40.400 $35/erder Machine setups Number of setups 1,042.200 19.300 $54/setup Machining Machine hours 5.306,400 120,600 $44/hour Quality control Number of inspections 810,000 30,000 $27/inspection The cost drivers used for each product were Cost Drivers Royale Majestic Total a S D 9 9 D Question 1 of 1 K 1K7 wwwww Machining Machine hours 5,306,400 120,600 $44/hour Quality control Number of inspections 810,000 30,000 $27/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 18.000 22.400 40,400 Machine setups 6,000 13,300 19.300 Machine hours 75,000 45,600 120,600 Inspections 11.000 19.000 30.000 (a) E C -/20 E O . Question 1 of 1 3 > -/20 Assign the total 2022 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, eg. 12.25) Royale Majestic Total assigned costs $ $ Cost per unit $ $ (61) eTextbook and Media Attempts: 0 of 3used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: James D. Stice, Earl K. Stice, Fred Skousen

16th Edition

324376375, 0324375743I, 978-0324376371, 9780324375749, 978-0324312140

More Books

Students also viewed these Accounting questions