CALCULATOR MESSAGE HY INSTRUCTOR FULL SCREEN PRINTER VERSION NEXT Problem 4-2A a, b1-62 (Video) Schulta Electronics manufactures two ultra high-definition television models: the Royale which sets for $1,400, and a new model the Majestic, which sells for $1.320. The production cost computed per unit under traditional costing for each model in 2020 was as follows Traditional Costing Royale Majestic Direct materials 5650 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead (542 per DLH) 252 210 Total per unit cost $1,022 720 In 2020. Schuita manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 542 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8.476,600 by the total direct labor hours (200,000) for the two models Under traditional conting the gross profit on the models was Royale S8 (51,480 - $1,02) and Majestic 600 ($1.320 - 5720). 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 anks Schuites controller to prepare an analysis using activity based costing (ABC). The controller accumulates the following information about overtatto the year anded December 31, 2020 Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders 51,258,600 40,600 $31/order Machine setups Number of setups 990,000 18,000 $55setup Machining Machine hours 5,445,000 121,000 $45/hour Quality control Number of inspections 783,000 29,000 $27/inspection The cost drivers used for each product were 5 the year ended December 31, 2020 CALCULATOR MESSAGE HY INSTRUCTOR Estimated Use of Cost Drivers 40,600 18,000 121,000 29,000 Activity Estimated Cost Pools Cost Drivers Overhead Purchasing Number of orders $1,258,600 Machine setups Number of setups 990,000 Machining Machine hours 5,445,000 Quality control Number of inspections 783,000 The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 17,000 23,600 Machine setups 6,000 12,000 Machine hours 75,000 46,000 Inspections 17,000 Activity-Based Overhead Rate $31/order $55/setup 345/hour $27/inspection Total 40,600 18,000 121,000 29,000 12,000 Your answer is partially correct. Try again. Assign the total 2020 manufacturing overhead costs to the two products using activity based costing (ABC) and determine the overhead cost per unit. (Hound cost per unit to 2 decimal poco c.g. 12.25.) Royale Majestic Total assigned costs 4556000 3920600 Cost per unit 182.24 392.06 Assign the total 2020 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost perunt. (Round cost per unit to 2 decim 9. 12.25.) Royale Majestic Total assigned costs 4556000 3920600 Cost per unit 182.24 392.06 Your answer is partially correct. 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 951.05 902.06 Your answer is incorrect. Try again Cost per unit CALCULATOR 182.24 MESSAGE MY INSTRUCTOR 392.06 PULSORTEN Your answer is partially correct. Try again. Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic X Cost per unit 951.05 902.06 x 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.) Royale Majestic Gross profit 13223800 4179400