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ABC costing Applewood Electronics manufactures two large-screen television models, the Monarch, which has been produced since 2000 and sells for $855, and the Regal, a

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ABC costing Applewood Electronics manufactures two large-screen television models, the Monarch, which has been produced since 2000 and sells for $855, and the Regal, a new model introduced in early 20o5 that sells for $1.083. Applewoods CEO, Harry Hazelwood, suggested that the company should concentrate its marketing resources on the Regal model and begin to phase out the Monarch model. Applewood currently uses a tradtional costing system. The following cost information has been used as a basts for pricing decisions over the past year Regal Direct Mater $197.6 Direct labour hours Machine hours 3,800 Units produced 20,900 Direct labor cost asi 1 per hour, and the machine usage cost is $17 per hour. Mantacturrg overhead costs were estr ated at seo ooo and were alocated on the-of mad e hours. Martin Alecks, the new company controller, suggested that an activity-based costing analysis first be run to get a better picture of the true manufacturing cost. The following data were collected Cost Driver Activity Center Number of solder joints 817,000 Number of shipments 1,178,000 Number of inspections Quality control 902,880 Purchase orders Number of orders 54,720 Machine hours 212.500 Number of setups Machine setups Total traceable costs Number of Events 1,491,500 365,750 1,125,750 19.190 15,390 73,625 20,235 53,390 Quality control 180,576 104,481 76,095 Purchase orders 182,400 167,200 15.200 28,500 13,300 15,200 Machine setups Selling, general, and administrative expenses per unit sold are $251.75 for Monarch and $232.28 for Rega Calculate the manufacturing cost per unit for Monarch and Regal under: (If answer is in the thousands, please enter the thousand separator, for example, 2100 should be 2, 100. Round answurs to 2 dlecimmal places.) 1. A traditional costing system Traditional Costing System Calculate the operating profit per unit for Monarch and Regal under:(f the answer is a deficit, please put a minus sign in front of the amount, for example, 22,500. Round answers to 2 decimal places.) 1. A traditional costing system 2. The ABC system raditional Costing System BC System

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