Question

Sutcliffe Electronies Sutcliffe Electronics, a division of Best Corporation, manufactures two large-screen television models, the Mammoth, which has been produced since 2015, and sells for $990, and the Maximum, a newer model introduced in 2016 that sells for $1,254. Based on the following income statement for the year ended November 30, 2019, senior management at Best Corporation has decided to concentrate Sutcliffe's marketing resources on the Maximum model and to begin to phase out the Mammoth model because Maximum generates a much bigger operating income per unit Sutcliffe Electronics Income Statement for the Fiscal Year Ended November 30, 2019 Mammoth Маximum Total Revenue $21,780,000 13,794,000 7,986,000 6,413,000 $1,573,000 22,000 $71.50 $5,016,000 3,511,200 1,504,800 1,075,800 $429,000 4,000 $107.25 $26,796,000 17,305,200 9,490,800 7,488,800 2002,000 Cost of Goods Sold. Gross Margin Selling and Admin. Operating Income Units produced and sold Operating Income per unit sold Details of cost of goods sold for Mammoth and Maximum are as follows Mammoth Маximum Total Total Per Unit Per Unit $5,033,600 435,600 3,484,800 $8,954,000 $4,840,000 $13,794,000 $2,569,600 184,800 316,800 $3,071,200 $440,000 $3,511,200 Direct Materials Direct Mfg. Labor Machine Costs Total Direct Costs $228.80 $642.40 46.20 19.80 158.40 79.20 $407.00 $767.80 МОН Сosts Total COGS $220,00 $1 10.00 $877.80 $627,00 Mammoth requires 1.5 hours per unit and Maximum requires 3.5 hours per unit. The direct manufacturing labor cost is $13.20 per hour a bMachine costs include lease-costs of the machine, repairs, and maintenance. Mammoth requires 8 machine hours per unit and Maximum requires 4 machine-hours per unit. The machine-hour rate is $19.80 per hour cManufacturing overhead costs are allocated to products based on machine-hours at a rate of $27.50 per hour Sutcliffe's controller, Colin Hanton, is advocating the use of activity-based costing and activity-based management and has gathered the following information about the company's manufacturing overhead costs for the year ended November 30, 2019:

Answer 1

. Date 5 As an Ethical accountant, Colin consider Epsteing comments & recalculate the figures and o cost allocation on mutual on or 2002 Hanton should do suggeshans and conclude the basis understanding