Question

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,630, and a new model, the Majestic, which ses for $1.270. The production cost computed per unit under traditional costing for each modelin 2020 was as follows. Traditional Costing Direct materials Direct labor (S20 per hour) Manufacturing overhead ($41 per DLH) Total per unit cost Royale Majestic $600 $430 120100 246 205 8966 5725 In 2020. Schultz manufactured 25.000 units of the Revale 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 SG, 135,200 by the total direct labor hours 200,000) for the two models Under traditional costing, the gross profit on the models was Royale $664 ($1.630-S966) and Majestic $525 ($1,270 - $725). Because of this difference management is considering phasing out the Royale model and increasing the production of the Majestic model Before fina zingits decision, management asics Schultz's controller to prepare an analys's using activity-based costing (ABC). The controller accumulates the following information about overhead for the year ended December 31, 2020. Activity Cost Pools Cost Drivers Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections Estimated Overhead $1.258.600 1024,000 5,035,000 914,800 Estimated Use of Activity-Based Cost Drivers Overhead Rate 40,500 $31/order 19,000 $54 setup 119,900 $42/hour 29,100 $28/inspection The cost drivers used for each product ware: Cost Drivers Royale Majestic Purchase orders 16,000 22.600 Machine setups 5,000 14,000 Machine hours 74,000 45,900 Inspections 11,000 18,100 Total 40.600 19,000 119,900 29,100 Your answer is correct. 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, eg 12.25.) Royale Majestic $ Total assigned costs $ Cost per unit 4244,000.00 159.76 3851,200.00 385.12 e Textbook and Media Attempts: 2 of 7 used (11) Your answer is correct. Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, eg 12.25.) Royale Majestic Cost per unit $ 399.75 919.12 Attempts: 1 of 7 used

Answer 1

hi..i hope you required only gross profit of each model using ABC costing and i tried my level best..if you have any doubt please comment me...thank you

solution calculation of gross profit ofre each model using ABC costing me mw mun numun Royale $1,630 Majestic $1,870 Particulars we Selling Price per Whit Less: cost Per unit (from Pant-bl) $889.76 $919.12 Miu Giross procht Per $740-Qu. $350.88 unit