The cost drivers used for each product were: Cost Drivers Purchase orders Machine setups Machine hours Inspections (a) Royale 18,000 5,000 Cost per unit 74,000 11,000 Your answer is incorrect. Total assigned costs $ Majestic 22,600 LA 14,000 45,900 18,100 Total Assign the total 2025 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 40,600 19,000 119,900 29,100 6A Majestic
The cost drivers used for each product were: (a) Your answer is incorrect. Assign the total 2025 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.s. 12.25.)
Sunland Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1.630, and a new model. the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2025 was as follows. In 2025, Sunland manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40,676 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,135,200 by the total direct labor hours (200,000) for the two models: Under traditional costing, the gross profit on the models was Royale \$666 (\$1,630 - \$964) and Majestic \$537 (\$1,270 - \$733). 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 Sunland's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhe ad for the year ended December 31,2025
Under traditional costing, the gross profit on the models was Royale $666($1,630?$964) and Majestic $537($1,270?$733). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majesti model. Before finalizing its decision, management asks Sunland'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, 2025.