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5/9 Eonita Electronics manufactures two ultra-high-definition television models: the Royale, whichsells for $1.460, and a new modet the Majestic, whichsells for $1,270. The production cost
5/9
Eonita Electronics manufactures two ultra-high-definition television models: the Royale, whichsells for $1.460, and a new modet the Majestic, whichsells for $1,270. The production cost computed per unit under traditional costing for each model in 2025 was as follow In 2025, tonita manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 541.770 per direct Iabor hour was deternined by dividing total estimated manufacturing overhead of $.8,354,000 by the total direct labor hours (200,000) for the two models. Under traditional costing the gross profit on the models was Royale $479($1.480$1.001) and Majestic $551($1.270$719). Because of this difference, maragement is considering phasing out the Royale model and increasing the production of the Mojestic madel Eefore finalizing its decision, management asks Bonita's controller to prepare an analysis usitg activity based costing (ABC). The controller accumulates the following informationabout overhead for the yoar ended December 31,2025. Before finalizing its decision, management asks Bonita's controller to prepare an analys using activity based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2025. The cost drivers used for each product weres Assipn the total 2025 manufacturing overhead conts to the two products using actwity based conting (ABC) and deterimine the overhead cost per unit (Round cost per unlt to 2 declmal ploces, ese 12.25) eTextbook and Media Attempts: 0 of 6 used (b1) The parts of this question mist be cumpieted in order, This part will be ivalbole when you complete the nart above. (b2) The narts of this question rent be completed in order, This part will be walable when wou complete the part above Step by Step Solution
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