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Lily Electronics 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
Lily Electronics 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 2022 was as follows. Traditional Costing Royale Majestic Direct materials $650 $430 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($40.505 per DLH) 243 203 Total per unit cost $1,013 $733 In 2022, Lily manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40.505 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,101,000 by the total direct labor hours (200,000) for the two models. EN English (United States)
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