Question 5 of 5 1.67/5 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 Traditional Costing Direct materials Direct labor (S20 per hour) Manufacturing overhead (540 per DLH) Total per unit cost Royale $660 120 240 $1.020 Majestic $410 100 200 $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 tabor hour was determined by dividing total estimated manufacturing overhead of SB052.900 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross profit on the models was Royale $560 (51.580-51020) and Majestic 5560 ($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 costin (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 $1.248,000 39,000 $32/order Machine setups Number of setups 918.000 18,000 551/setup Machining Machine hours 5,077.800 120.900 $42 hour Quality control Number of inspections B09.100 27,900 $29 inspection The cost drivers used for each product were: og DO DO F 20 13 T = 16 2 * - & $ % @ ) 0 N 4 5 6 7 8 9 T W 0 Y ERT Y 7 Homework Question 5 of 5 1.67/5 E The cost drivers used for each product were Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 16,000 5.000 76,000 11.000 Majestic 23.000 13.000 44.900 16.900 Total 39.000 18.000 120.900 27.900 (a Your answer is correct Assign the tot 2020 manutacturing overhead costs to the two products using activity based costine (ABC) and determine the overhead cost per unit (Round cost per unit to 2 decimal procesos. 12.25 Royale 270000 Majestic 37400 Totalassigned costs $ $ 17112 5 Couter und 37740 eTextbook and Media Attempts to sused (51) . EM . Du FB S: