Question: If you could show the steps as if I was taking a test thank you to products P4-2A Schultz Electronics manufactures two ultra high-definition television

 If you could show the steps as if I was taking
a test thank you to products P4-2A Schultz Electronics manufactures two ultraIf you could show the steps as if I was taking a test thank you

to products P4-2A Schultz Electronics manufactures two ultra high-definition television models: the Royale d evaluate which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The production cost computed per unit under traditional costing for each model in 2017 was as follows. Traditional Costing Royale Majestic Direct materials Direct labor ($20 per hour) Manufacturing overhead ($38 per DLH) Total per unit cost $ 700 120 228 $1,048 $420 100 190 $710 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected man- ufacturing overhead of $7.600,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $552 ($1,600- $1,048) and Majestic $590 ($1,300 - $710). Because of this difference, management is con- sidering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Schultz'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, 2017. Activity- ased Overhead Rate $30/order $50/setup $40/hour $25/inspection Expected Use of Activity Estimated Overhead Cost Drivers Cost Pools Purchasing Machine setups Machining Quality control Cost Drivers Number of orders Number of setups Machine hours Number of inspections 40,000 18,000 120,000 28,000 $1,200,000 40.000 900,000 4,800,000 700,000

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