Applewood Electronics manufactures two large screen, high definition television (HDTV) modelsthe Monarch, which has been produced since 2010 and sells for $900, and the Regal, a model introduced in early 2012 that sells for $1,140 Applewoods CEO, Harry Hazelwood, suggested that the company concentrate its marketing resources on the Regal model and begin to phase out the Monarch model Applewood currently uses a traditional costing system The following cost information has been used as a basis for pricing decisions over the past year Per Unit Data Monarch Regal Direct materials $208 $584 Direct labour hours 1 5 3 5 Machine hours 8 4 Units produced 22,000 4,000 The direct labour cost is $12 per hour, and the machine usage cost is $18 per hour Manufacturing overhead costs were estimated at $4,800,000 and were allocated on the basis of machine 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 Activity Cost Traceable Centre Driver Costs Soldering Number of solder joints $942,000 Shipments Number of shipments 860,000 Quality control Number of inspections 1,240,000 Purchase orders Number of orders 950,400 Machining Machine hours 57,600 Machine setups Number of setups 750,000 Total traceable costs $4,800,000 Number of Events Activity Monarch Regal Total Soldering 1,185,000 385,000 1,570,000 Shipments 16,200 3,800 20,000 Quality control 56,200 21,300 77,500 Purchase orders 80,100 109,980 190,080 Machining 176,000 16,000 192,000 Machine setups 16,000 14,000 30,000 Selling, general, and administrative expenses per unit sold are $265 for Monarch and $244 6 for Regal Your answer is incorrect Try again Calculate the manufacturing cost per unit for Monarch and Regal under a traditional costing system (Round answers to 2 decimal places, e g 5 69 ) Monarch Regal Cost per unit $ $ Link to Text Link to Text Link to Text Your answer is incorrect Try again Calculate the manufacturing cost per unit for Monarch and Regal under an ABC system (Round answers to 2 decimal places, e g 5 69 ) Monarch Regal Cost per unit $ $ Link to Text Link to Text Link to Text Your answer is incorrect Try again Calculate the operating profit loss per unit for Monarch and Regal under a traditional costing system (Round answers to 2 decimal places, e g 6 59 Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g (45) ) Monarch Regal Profit (Loss) $ $ Link to Text Link to Text Link to Text Your answer is incorrect Try again Calculate the operating profit loss per unit for Monarch and Regal under an ABC system (Round answers to 2 decimal places, e g 6 59 Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g (45) ) Monarch Regal Profit (Loss) $ $ Link to Text Link to Text Link to Text Question Attempts 1 of 3 used Save for later Submit Answer

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Applewood Electronics manufactures two large-screen, high-definition television (HDTV) modelsthe Monarch, which has been produced since 2010 and sells for $900, and the Regal, a model

Applewood Electronics manufactures two large-screen, high-definition television (HDTV) modelsthe Monarch, which has been produced since 2010 and sells for $900, and the Regal, a model introduced in early 2012 that sells for $1,140. Applewoods CEO, Harry Hazelwood, suggested that the company concentrate its marketing resources on the Regal model and begin to phase out the Monarch model.

Applewood currently uses a traditional costing system. The following cost information has been used as a basis for pricing decisions over the past year:

Per-Unit Data	Monarch	Regal
Direct materials	$208	$584
Direct labour hours	1.5	3.5
Machine hours	8	4
Units produced	22,000	4,000

The direct labour cost is $12 per hour, and the machine usage cost is $18 per hour. Manufacturing overhead costs were estimated at $4,800,000 and were allocated on the basis of machine 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:

Activity	Cost	Traceable
Centre	Driver	Costs
Soldering	Number of solder joints	$942,000
Shipments	Number of shipments	860,000
Quality control	Number of inspections	1,240,000
Purchase orders	Number of orders	950,400
Machining	Machine hours	57,600
Machine setups	Number of setups	750,000
Total traceable costs		$4,800,000

	Number of Events
Activity	Monarch	Regal	Total
Soldering	1,185,000	385,000	1,570,000
Shipments	16,200	3,800	20,000
Quality control	56,200	21,300	77,500
Purchase orders	80,100	109,980	190,080
Machining	176,000	16,000	192,000
Machine setups	16,000	14,000	30,000

Selling, general, and administrative expenses per unit sold are $265 for Monarch and $244.6 for Regal.


	Your answer is incorrect. Try again.

Calculate the manufacturing cost per unit for Monarch and Regal under a traditional costing system. (Round answers to 2 decimal places, e.g. 5.69.)

		Monarch		Regal
Cost per unit		$		$

Link to Text


	Your answer is incorrect. Try again.

Calculate the manufacturing cost per unit for Monarch and Regal under an ABC system. (Round answers to 2 decimal places, e.g. 5.69.)

		Monarch		Regal
Cost per unit		$		$

Link to Text


	Your answer is incorrect. Try again.

Calculate the operating profit/loss per unit for Monarch and Regal under a traditional costing system.

(Round answers to 2 decimal places, e.g. 6.59. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		Monarch		Regal
Profit/(Loss)		$		$

Link to Text


	Your answer is incorrect. Try again.

Calculate the operating profit/loss per unit for Monarch and Regal under an ABC system.

(Round answers to 2 decimal places, e.g. 6.59. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)