+ Ch 17 Homework Question 3 of 3 View Policies Current Attempt in Progress Marigold Dectronics manufactures two ultra high definition television models the Royale which sells for $1.580, and a new model the Majestic, which sells for $1.270. The production cost computed per unit under traditional costing for each model in 2020 was a follows. - Traditional Costine Royale Majestle Direct materials 5650 5430 Direct labor $20 per hour 120 100 Manufacturing overhead (S41 per DLH) 246 205 Total per unit co 51016 $735 In 2020 Marleold manufactured 25.000 units of the Royale end 10.000 units of the Majestic. The overhead rate of $41 per direct labor hour was determined by dividing total estimated manufacturing over head of 58.101.000 by the total direct labor hours 1200,000) for the two models Under traditional costing the press profit on the models was Royale $564 (51.580-51016) and Majestic 5535 (51.270-5735). Because of this difference management is considering phasing out the Royale model and increasing the production of the Maestic model Before finalizing its decision management asks Marigold'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, 2020 Activity Cost Pools Purchasing Machine setups Machining Quality control Cost Drivers Number of orders Number of setups Machine hours Number of inspection Estimated Overhead $128.3.200 918.500 5.155.700 743 600 Estimated Use of Activity-Based Cost Drivers Overhead Rate 40.100 $32 order 16.700 $55/setup 119.900 343/hour 29600 $26/inspection The cost drivers used for each product were Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 17000 4,000 75.000 12.000 Majestic 23.100 12,700 44.900 16.600 Total 40.100 14,700 119.900 28.600 imgonline.com.ua..jpg A Show all + Ch. 17 Homework Question 3 of 3 -14 Assign the total 2020 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 s s S Total signed costs Couper unit S S eTextbook and Media Calculate cost per unit of each model using ABC costing Round answers to 2 decimal places.cg 1225) Royale Majestic Cost per unit $ $ e Textbook and Media Calculate gross proht of each model using ABC costing (Round answers to 2 decimal places es 12.25.) Royale Majestic Gross profit $ $ e Textbook and Media Save for Attempts unlimited Submit imgonline.com-ua..jpg Show all