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Vaughn Electronics manufactures two ultra high-definition television modek the Royale which sells for $1,530, and a new model, the Majestic, which sells for $1.270. The

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Vaughn Electronics manufactures two ultra high-definition television modek the Royale which sells for $1,530, 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 Royale Majestic Direct materials $610 $400 120 100 Direct labor ($20 per hour) Manufacturing overhead (541 per DLH) Total per unit cost 246 205 $976 $705 In 202 vaughn manufactured 25,000 units of the Royale and 10,000 units of the Majestic: The overhead rate of 541 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8.187 500 by the total direct labor hours (200,000) for the two models. Under traditional costing the gross profit on the models was Royale $554 ($1,530 - $976) and Majestic 5565 ($1.270 - 5705). 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 Vaughn'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 Estimated Overhead Estimated Use of Cost Drivers Cost Drivers Activity-Based Overhead Rate Purchasing Number of orders $1.286,500 41,500 531/order Machine setups Number of setups 961.200 17800 554/setup Machining Machine hours 5,185.800 120 600 $43/hour Quality control Number of inspections 754.000 29.000 $26/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 18.000 23,500 41500 Machine setups 5.000 12800 17.800 Machine hours 75,000 45 800 120.600 Inspections 11000 18.000 29.000 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 Cost per unit $ e Textbook and Media Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, eg 12.25) Royale Majestic Cost per unit $ eTextbook and Media Calculate gross profit of each model using ABC costing (Round answers to 2 decimal places, 12.25) Royale Majestic $ Gross profit eTextbook and Media Attempts: unlimited Subur Store

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