Question 9 of 12 - /1 View Pois Current Attempt in Progress Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1.480, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2020 was as follows Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead (540 per DLH) Total per unit cost Royale $660 120 240 $1,020 Majestic $420 100 200 $220 In 2020. Schulta 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 58.098,800 by the total direct labor hours (200,000) for the two models Under traditional costing the pross profit on the models was Royale $460 ($1.480 - $1,020) and Majesta 5600 ($1.320 - 57201. 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 Purchasing Machine stos Cost Drivers Number of orders Number att Estimated Overhead 51.196.600 911,600 Estimated Use of Cost Drivers 38.800 17,200 Activity-Based Overhead Rate $31/onder 55p A * 7 8 W E R . Y S D F G H X c V B N M Question 9 of 12 - / 1 Cost Pools Purchasing Machine setups Machining Quality control Cost Drivers Number of orders Number of setups Machine hours Number of inspections Overhead $1,196,600 911,600 5,218,400 772,200 Cost Drivers 38,600 17,200 118,600 29,700 Overhead Rate $31/order $53/setup $44/hour $26/inspection The cost drivers used for each product were: Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 16,000 5.000 74,000 12.000 Majestic 22,600 12,200 44,600 17,700 Total 38,600 17,200 118.600 29.700 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, es 12.25) Royale Majestic Total assigned costs 5 $ Cost per unit $ $ e Textbook and Media 3 % 5 & 7 8 0 W E R. Y eTextDook and Media Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, eg 1225) Royale Majestic Cost per unit eTextbook and Media Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, s. 1225. Royale Majestic Gross profit eTextbook and Media IstorLatte Attempts: 0 of 3 used Submit A % 5 4 6 7 B 8 E R T Y U
