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with explanation please Problem 17-2A Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and Majestic, which sells for $1,270.
with explanation please
Problem 17-2A Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2017 was as follows. new model, the Traditional Costing Royale Majestic Direct materials $640 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42 per DLH) 210 252 $1,012 $720 Total per unit cost In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing total expected manufacturing overhead of $8,419,350 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $568 ($1,580 - $1,012) and Majestic $550 ($1,270 - $720). 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, 2017. Expected Use of Cost Drivers Activity-Based Overhead Rate Activity Cost Pools Estimated Cost Drivers Overhead Purchasing Number of orders $1,205,900 38,900 $31/order Machine setups Number of setups 1,000,450 18,190 $55/setup Machining Machine hours 5,382,000 119,600 $45/hour 831,000 Quality control Number of inspections 27,700 $30/inspection The cost drivers used for each product were: The cost drivers used for each product were: Cost Drivers Royale Majestic Total 22,200 Purchase orders 16,700 38,900 Machine setups 18,190 4,890 13,300 44,300 Machine hours 75,300 119,600 11,000 16,700 Inspections 27,700 Your answer is correct Assign the total 2017 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, e.g. 12.25.) Royale Majestic 4505150 $ 3914200 Total assigned costs Cost per unit 180.21 391.42 LINK TO TEXT VIDEO: SIMILAR PROBLEM Your answer is incorrect. Try again. Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Cost per unit 1012 720 LINK TO TEXT VIDEO: SIMILAR PROBLEM Your answer is incorrect. Try again Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Majestic Royale Gross profit Open Show Work Click if you would like to Show Work for this question: LINK TO TEXT VIDEO: SIMILARStep by Step Solution
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