Swifty Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,480, and a new...

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Swifty Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,480, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2022 was as follows. Traditional Costing Royale Majestic Direct materials $650 $420 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42.383 per DLH) 254 212 Total per unit cost $1.024 $732 In 2022, Swifty manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42.383 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,476,500 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $456 ($1.480-$1,024) and Majestic $538 ($1,270-$732). 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 Swifty'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, 2022. Activity Estimated Estimated Use of Activity-Based Overhead Rate Cost Pools Overhead Cost Drivers Cost Drivers Number of orders $1,274,100 41.100 $31/order Number of setups 899,600 17,300 $52/setup Machine hours 5,427,000 120,600 $45/hour Number of inspections 875,800 30,200 $29/inspection Purchasing Machine setups Machining Quality control The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 18,000 23,100 Machine setups 5,000 12,300 Machine hours 75,000 45,600 Inspections 12,000 18,200 Total 41,100 17,300 120,600 30,200 Assign the total 2022 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 Total assigned costs $ Cost per unit Swifty Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,480, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2022 was as follows. Traditional Costing Royale Majestic Direct materials $650 $420 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42.383 per DLH) 254 212 Total per unit cost $1.024 $732 In 2022, Swifty manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42.383 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,476,500 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $456 ($1.480-$1,024) and Majestic $538 ($1,270-$732). 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 Swifty'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, 2022. Activity Estimated Estimated Use of Activity-Based Overhead Rate Cost Pools Overhead Cost Drivers Cost Drivers Number of orders $1,274,100 41.100 $31/order Number of setups 899,600 17,300 $52/setup Machine hours 5,427,000 120,600 $45/hour Number of inspections 875,800 30,200 $29/inspection Purchasing Machine setups Machining Quality control The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 18,000 23,100 Machine setups 5,000 12,300 Machine hours 75,000 45,600 Inspections 12,000 18,200 Total 41,100 17,300 120,600 30,200 Assign the total 2022 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 Total assigned costs $ Cost per unit

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