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CES Schulte ectronics manufactures two ultra high-definition television models the Royale which is for $1,980, and new the Majestic, which sells for $1,270. The production

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CES Schulte ectronics manufactures two ultra high-definition television models the Royale which is for $1,980, and new the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2010 was as follows: Tractal cong Direct materials 5660 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($40 per DLH) 240 200 Total per unit cost $1,020 $710 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,052,900 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross profit on the models was Royale $560 ($1,580 - $1,020) and Majestic $560 ($1,270 - $710). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. A Hide Il on.examity.com is sharing your screen. Stop sharing MacBook Air Before nating its decision, management asks Schulter's controller to prepare an analysis using stated (ABC). The controller accumulates the following Information about overhead for the year ended December 31, 2020 Activity Estimated Estimated to Coat Pools Activity Cost Driver Overhead Cost Drivers Ovrhadat Purchasing Number of orders $1,248,000 39,000 $32/order Machine setups Number of setups 918,000 18,000 $51/setup Machining Machine hours 5,077,800 120,900 $42/hour Quality control Number of inspections 809,100 27,900 $29/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 16,000 23,000 39,000 Machine setups 5,000 13,000 18,000 Machine hours 76,000 44.900 120.900 2 Stop sharing Hide Il on.examity.com is sharing your screen. RCES Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 16,000 5,000 76,000 11,000 Majestic 23,000 13,000 44,900 16,900 Total 39,000 18,000 120,900 27,900 Assign the total 2020 manufacturing overhead costs to the two products using overhead cost per unit. (Round cost per unit to 2 decimal places, e.g. 12.1 Royale Majestic Sly Total assigned costs $ $ Cost per unit $ Ilon.examity.com is sharing your screen. Stop sharing Hide MacBook Air me: 05:02 PM / Remaining: 78 min. Calculate cost per unit of each model using ABC costing. (Round answer Royale Majestic Cost per unit Calculate gross profit of each model using ABC costing. (Round answer Royale Majestic Gross profit $ Click if you would like to Show Work for this question: Open She Il on.examity.com is sharing your screen. Stop sharing Hide MacBook Air

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