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Shetheld Electronica manulactures two ultra hiph-dehintion telersign models ihe Royale. which sells for $1,480, and a new model. the MNestic which selk for $1320. The

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Shetheld Electronica manulactures two ultra hiph-dehintion telersign models ihe Royale. which sells for \$1,480, and a new model. the MNestic which selk for $1320. The production cost computed per unit under traditional costine for each medel in 2025 was at follows: In 2025, Shetfeld manufactured 25,000 uniti of the Royale and 10000 units of the Majestic. The ovehe 3 t rate of $42383 per direct taber hour was determined by eividing totalestimated manul scturing overhead of $8,476,600 by the total direct laboe hours (200000, for the two modelis. Unser traditional costing the gross profit on the models was Royale $456($1.480$1.024) and Majestie $98($1,320$722). Because of this difference management is consiseeing phasing cot the Royale model and increasire the broduction of the Majestic model. Before finaleine its dechion, manugement asks shetheld controler to prepare an analy is using activity bsaed cogting (ABC). The controller accumulates the folowing inferination about overhead for the year ended Cecember 31, 2025. The covt drwernused for eads aroduct whe: The cost diven used ter rach product were (b2) Ealcuibte Eont proft of exchmodel vine ABC coning (Round answers to 2 decimat pleces, 8.3 .12 .25 )

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