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help me please PART 2: COMPLETING MISSING INFORMATION BONZZE Electronics manufactures two large-screen television models: the Doyale which sells for $1,650, and a new model,
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PART 2: COMPLETING MISSING INFORMATION BONZZE Electronics manufactures two large-screen television models: the Doyale which sells for $1,650, and a new model, the Gajestic, which sells for $1,350. The production cost computed per unit under traditional costing for each model in 2021 was as follows. In 2021, BONZZE manufactured 25,000 units of the Doyale and 10,000 units of the Gajestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Doyale $472 or ( $1,650 - $1,178), and Gajestic $590 or (\$1,350 - \$710). Because of this difference, management is considering phasing out the Doyale model and increasing the produc- tion of the Gajestic model. Before finalizing its decision, management asks Schultz's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31,2021. The cost drivers used ror eacn proauct were: Required: A. Assign the total 2021 manufacturing overhead costs to the two products using activity-based costing (ABC). What was the cost per unit and gross profit of each model using ABC costing? B. Are management's future plans for the two models sound? WhyStep by Step Solution
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