ptin Progress Schultz 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 2020 was as follows Royale Majestic $660 $ 410 Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead ($ 40 per DLH) Total per unit cost 120 100 240 200 $ 1.020 $710 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $ 40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8.052.900 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross profit on the models was Royale $ 560 (1,580 - $1,020) and Majestic $ 560 (S 1,270 - $ 710). 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. In 2020. Schultz manufactured 25.000 units of the Royale and 10.000 units of the Majestic The overhead rate of $ 40 per direct labor hour was determined by dividing total estimated manufacturing overhead of 58,052,900 by the total direct labor hours (200,000 for the two models Under traditional costing the gross profit on the models was Royale $ 560 ($ 1.580 - $1,020) and Majestle $ 560 (51.270 - $7101 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 Schultes 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 Estimated Estimated Use of Activity Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $ 1.240,000 39.000 $32/order Machine setups Number of setups 918.000 18.000 $ 51/setup Machining Machine hours 5.077.800 120,900 $42/hour Quality control Number of inspections 809,100 27,900 $ 29/inspection The cost drivers used for each product were Cost Drivers Royale Majestic Total Purchase orders 16,000 23,000 39.000 Machine setups 5,000 13,000 18.000 Machine hours 76.000 44.900 120.000 Inspections 11,000 16.900 27.900 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. 1225.) Royale Majestic Total assigned costs $ $ Cost per unit $ $ Save for later Attempts: 0 of 7 used Submit
