Question: Coronado Electronics manufactures two HD television models: the Royale, which sells for $1,260, and a new model, the Majestic, which sells for $990. The production

 Coronado Electronics manufactures two HD television models: the Royale, which sells
for $1,260, and a new model, the Majestic, which sells for $990.
The production costs calculated per unit under traditional costing for each model

Coronado Electronics manufactures two HD television models: the Royale, which sells for $1,260, and a new model, the Majestic, which sells for $990. The production costs calculated per unit under traditional costing for each model in 2022 were as follows: In 2022. Coronado manufactured 18,000 units of the Royale and 9,000 units of the Majestic. The overhead rate of $35 per direct labour hour was determined by dividing total estimated manufacturing overhead of $4.4 million by the total direct labour hours (126,000) for the two models. Under traditional costing, the gross profiton the models was $445 for the Royale or (\$1,260 - \$815), and \$484 for the Majestic or ($990$506). 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 Coronado'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: Before finalizing its decision, management asks Coronado's controller to prepare an analysis using activity-based costing (A controller accumulates the following information about overhead for the year ended December 31, 2022: The cost drivers used for each product were as follows: he cost drivers used for each product were as follows: (a) Assign the total 2022 manufacturing overhead costs to the two products using activity based costing (ABC). (Round answers to 2 decimal places, e.s. 15.25.)

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