how do i find the gross profit for each model?
View Polici Show Atteot History Current Aftempt in Progress Schult Electronics manufactures two ultra high definition television models: the Royale which sells for $1,530, 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 as follow Royale Majestic $ 640 $ 400 Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead (5 41 per DLH) 120 100 246 205 Total per unit cost $1.006 $ 1,006 $ 705 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $ 42 per direct labor hour was determined by dividing total estimated manufacturing overhead of $ 8,114.000 by the total direct labor hours (200.000 for the two models Under traditional costing the gross profit on the models was Royale $524 ($ 1.530 - $ 1,006) and Majestic $565 ($ 1.270 - $ 705). Because of this difference, management is 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-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2020. Activity Cost Pools Estimated Overhead $ 1,299,200 Estimated Use of Cost Drivers Cost Drivers Number of orders Activity-Based Overhead Rate Purchasing 40,600 $32/order Machine setups Number of setups 1,067,000 19,400 $ 55/setup Machining 5,035,800 119,900 $ 42/hour Machine hours Number of inspections Quality control 712,400 27,400 $ 26/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Durchroonedare. 17.0 GARA Aan Royale Majestic Total 17,000 23,600 40,600 Cost Drivers Purchase orders Machine setups Machine hours 6,000 13,400 19.400 75,000 44.900 119.900 Inspections 11,000 16,400 27.400 (a) Your answer is correct 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 Royale Majestic Total assigned casts S 4310000 $ 3804400 Cost per unit 122.40 $ 380.44 e Textbook and Media Attempts: 1 of 5 used (61) Your answer is correct Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, eg. 12.25) Rovale Majestic Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, eg 1225) Royale Majestic Cost per unit $ 932 40 880.44 ebook and Media Attempts: 4 of 5 used (62) * Your answer is incorrect Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, 68. 12.25.). Royale Majestic (52) X your answer is incorrect. Calculate gross proht of each model using ABC costing (Round answers to 2 decimal places, es 12.25.) Royale Majestic Gross pront $ 11048 $ 1260.38
