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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

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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 Costine Direct materials Direct labor ($20 per hour Manufacturing overhead ($41 per DLH) Total per unit cost Royale $650 120 246 $1,016 Majestic $430 100 205 $735 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,109,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $564 ($1,580 - $1.016) and Majestic $535 ($1,270 - $735). 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 als Schultza 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 $1,283,200 40,100 $32/order Machine setups Number of setups 918.500 16,700 $55/setup Machining Machine hours 5,155,700 119.900 $43/hour Quality control Number of inspections 743,600 28,600 $26/inspection The cost drivers used for each product were: Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 17,000 4,000 75,000 12.000 Majestic 23,100 12,700 44,900 16,600 Total 40,100 16,700 119.900 28,600 product were Total Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 17.000 4,000 75,000 12,000 Majestic 23,100 12,700 44.900 16,600 40,100 16,700 119.900 28,600 (a) 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, s. 12.25.) Royale Majestic Total assigned costs Cost per unit $ eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (61) The parts of this question must be completed in order. This part will be available when you complete the part above. (52) The parts of this question must be completed in order. This part will be available when you complete the part above

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