1 answer

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells f $1,630, and a...

Question:

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells f $1,630, and a new mode
The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,800 22,400 40,200 Machine
Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Majestic Royale Cos
Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells f $1,630, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2017 was as follows. or Traditional Costing Royale Majestic Direct materials $640 $430 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($43 per DLH) 258 215 Total per unit cost $1,018 $745 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $43 per direct labor hour was determined by dividing total expected manufacturing overhead of $8,552,100 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross proft on the models was Royale $612 ($1,630-$1,018) and Majestic $575 ($1,320-$745). 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 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 Estimated Expected Use of Activity-Based Cost Pools DriversOverhead Cost Drivers Overhead Rate 40,200 $35/order Purchasing Number of orders$1,407,000 19,200 $54/setup Machine setups Number of setups 1,036,800 120,600$44/hour 5,306,400 MachiningMachine hours 29,700 $27/inspection 801,900 Quality control Number of inspections The cost drivers used for each product were:
The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,800 22,400 40,200 Machine setups 5,900 13,300 19.200 Machine hours 75,000 45,600 120,600 Inspections10,700 19,000 29,700 Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, e.g. 12.25.) Royale Majestic Total assigned costs$ Cost per unit Check Answer Save for Later Attempts: 0 of 7 used
Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Majestic Royale Cost per unit Royale Majestic Gross$ Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) profit

Answers

1) Cost Drivers royale majestic
purchase orders 623000 784000
machine setups 318600 718200
machining 3300000 2006400
quality control 288900 513000
total cost assigned 4530500 4021600
cost per unit 181.22 402.16
2) cost per unti
Royal majestic
Direct materials 640 430
Direct labor 120 100
overhead cost per unti 181.22 402.16
cost per unit 941.22 932.16
3) Gross profit
Royal majestic
Sales 1,630 1,320
cost per unit 912.82 909.64
Gross profit 717.18 410.36 answer
.

Similar Solved Questions

1 answer
Please solve using excel and include steps and formular so that I can replicate. Caption: Princess...
Please solve using excel and include steps and formular so that I can replicate. Caption: Princess Foods Corporation has observed the changing awareness of the population on health and nutrition. Therefore, they want to investigate the acceptance of a low-calorie product and a low-sodium product...
1 answer
Ractice Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT On July...
ractice Assignment Gradebook ORION Downloadable eTextbook gnment CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT On July 1, 2017, Oriole Company Ltd. pays £18,000 to Orlow Insurance Ltd. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Oriole Company L...
1 answer
Need help, work shown would be so helpful so i can understand and please box answer clearly if you can!!! either way thank you so much in advance:) s. You are interested in whether a treatment ca...
need help, work shown would be so helpful so i can understand and please box answer clearly if you can!!! either way thank you so much in advance:) s. You are interested in whether a treatment causes an effect on a continuously measurable attribute. You use a treatment group with 7 cases and a c...
1 answer
What is a type of fixed cost that a Human Resource department of a corporation would...
What is a type of fixed cost that a Human Resource department of a corporation would typically have?...
1 answer
1. Harry and Teddy are two students who met by chance the last day of exams...
1. Harry and Teddy are two students who met by chance the last day of exams before the end of the spring semester. They both liked each other but forgot to exchange contact info. Fortunately, each remembers that they spoke of attending a campus party that night. Unfortunately ther are two parties go...
1 answer
Moment of inertia problem
A uniform solid sphere has a moment of inertia I about an axis tangent to its surface. find the moment of inertia of this sphere about an axis through its center interms of I....
1 answer
7n Use Mathematical Induction to prove that Σ 2-2n+1-2, for all n e N
7n Use Mathematical Induction to prove that Σ 2-2n+1-2, for all n e N...
1 answer
Overproduction of uric acid in the body can be an indication of cell breakdown. This may...
Overproduction of uric acid in the body can be an indication of cell breakdown. This may be an advance indication of illness such as gout, leukemia, or lymphoma.† Over a period of months, an adult male patient has taken seven blood tests for uric acid. The mean concentration was x = 5.35 mg/d...
1 answer
1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level...
1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy. Use an SRAS curve and an AD curve. You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will...
1 answer
You have the following data T2 T3 and the true DGP is: Your friend calculated two...
You have the following data T2 T3 and the true DGP is: Your friend calculated two estimates of ^: ^1- 1 and B2 2 (a) Find the sum of squared residuals for A1. (hint: you should get an actual number) ind the sum of squared residuals for ß2. (hint: you should get an actual number) (c) Which one ...
1 answer
Please Help me with homework QUESTION 11 Vendor reports can be accessed in QuickBooks in all...
Please Help me with homework QUESTION 11 Vendor reports can be accessed in QuickBooks in all of the following ways except: Reports Center
 Vendors Center Reports Menu All of the choices are correct QUESTION 12 Which one of the following activities is not shown in th...
1 answer
Homework: Problem Set 4 Score: 0 of 15 pts 4.2.18 Suppose that E and F are...
Homework: Problem Set 4 Score: 0 of 15 pts 4.2.18 Suppose that E and F are two events and that PE and F)-0.4 and P(E)=0.5. What is P(FIE)? P(FIE)- (Type an integer or a decimal. Do not round.) Mac esc en...
1 answer
What is the angular dispersion?
The index of refraction for violet light in silica flint glass is 1.66 and that for red light is 1.62. What is the angular dispersion of visible lightpassing through an equilateral prism of apex angle 60.0° if the angle of incidence is 47.0°? (See figure.The index of refraction for air is 1....
1 answer
1. What is the primary goal of management? What are the primary tasks of a Chief...
1. What is the primary goal of management? What are the primary tasks of a Chief Financial Officer (CFO) and others in finance function of an organization? 2. Name and explain three tricks that management can play to manage earnings. Explain how using financial ratios can help spot these tricks. 3. ...
1 answer
Canada Ac- ng Weekly Up- The following merchandise transactions occurred in December. Both companies use a...
Canada Ac- ng Weekly Up- The following merchandise transactions occurred in December. Both companies use a perpetual Inventory system ook PLUS Support Dec. 3 Whispering Winds Ltd. sold goods to Ayayal Corp. for $61,500,terms 2/10, 1/30, FOB shipping point. The inventory had cost Whispering Winds $37...
1 answer
Question 1 of 1 -/1 View Policies Current Attempt in Progress 2. The accountant preparing the...
Question 1 of 1 -/1 View Policies Current Attempt in Progress 2. The accountant preparing the income statement for Pharoah, Inc. had some doubts about the appropriate accounting treatment of the seven items listed below during the fiscal year ending December 31, 2020. Assume a tax rate of 20 percent...
1 answer
A 21-year-old man presents himself to the release of information (ROI) specialist at Metro Medical Center...
A 21-year-old man presents himself to the release of information (ROI) specialist at Metro Medical Center with a request to access his birth records. The young man stated he was adopted and has recently experienced some health complications that his physician suspects are linked to a possible geneti...
1 answer
Matreilan learning In each reaction box, place the best reagent and conditions from the list below....
matreilan learning In each reaction box, place the best reagent and conditions from the list below. NO2 NBS, ROOR, hv Ha, Pd AICI3 cl AICI3 CI CH3CH2CI, AlCl3 Bra, FeBr3 AICI HNO3, H2SO4 (Hg), H sor. H2SO4 KNO3 OCH,CHzCHzol. AICI3...
1 answer
10 of 12 a. Compute the value of the test statistic (to 2 decimals). (to 2...
10 of 12 a. Compute the value of the test statistic (to 2 decimals). (to 2 decimals) Can it be c MacBook Air...