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help please! Problem 4 2A a, b1-b2 (Video) (Part Level Submission) Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,530,
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Problem 4 2A a, b1-b2 (Video) (Part Level Submission) Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,530, and a new model, the Majestic, which cells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $640 $400 labor ($20 per hour) 120 100 Manufacturing overhead (841 per DOH) 246 205 Total per unit cost $1,006 $705 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41 per direct labor hour was determined by dividing total umated manufacturing overhead of $8,114.400 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross profit on the models was Royale $524 (1,550 - $1,006) and Majestic $565 (51.270 - $705). Because of this difference, nagument considering phasing out the Royale model and increasing the production of the Majestic model Before finalizing its decision management asks Schultz's controller to prepare an analysis using activity-baned costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2020. Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1.299,200 40,600 532/order Machine setups Number of setups 1,067,000 19,400 $55/setup Machining Machine hours 5,035,800 119.900 $42/hour Quality control Number of inspections 712,400 27,400 $26/inspection CALCULATOR FULL SCREEN PEDRER VISION MACK POURCEN Cost Drivers Purchase orders Machine setups Machine houts Inspections Royale 17,000 6,000 75,000 11,000 Majestic 23,600 13.400 44,900 16,400 Total 10,600 19.400 119,900 22.400 a 3 Your answer is incorrect. Try again 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 102 decimal places, .0. 12.25.) Royale Majestic Total assigned costs Cost per unit Click if you would like to show Work for this question: Den Show Work LINTO VIDEO SIMILAR PROBLEM ment CALCULATOR FULL SCREEN PILINE VON HACK LOS Devers Purchase orders Machine setups Machine hours Inspections Royale 17,000 6,000 75,000 11,000 Majestic 23,600 13.400 44,900 16,400 Total 40,600 19,400 119,900 27,400 answer is incorrect. Try again. Assign the total 2020 manufacturing overhead costs to the two products using activity based costing (ABC) and determine the overhead cost per un cop decimal places, c.9. 12.25.) Royale Majestic Total assigned costs Cost per unit Click if you would like to show Work for this questions een Show Wock TO TEAT VIDEO PILAR Step by Step Solution
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