Calculate cost per unit of each model using ABC costing for Royale and Majestic.

Question

Calculate cost per unit of each model using ABC costing for Royale and Majestic. (Cost Per Unit)

And

Calculate gross profit of each model using ABC costing for Royale and Majestic. (Gross Profit)

Thank you

WileyPLUS edugen.wileypluscom/edugen/student/maintruni WileyPLUS Weygandtmanagerial accounting, , 7e MANAGERIAL ACCOUNTING (AcCT105) samoakovEW PANTER version enck NDT ASSIGNMENT RESOURCES Chp 4 Assign Schultz Elect sting high-de the Roy hich $1,480. the M hich $1,320. The producti ed pe Problem 2017 Review Score Review Results by Study Objective Traditional costing Direct materials Direct labor ($20 per hour) Manufacturing overhead ($41 per DLH ) Royale Majestic $600 $430 120 100 Total per unit cost $966 $735 2017, Schultz direct labor h ed 25,000 (200,000 the Roy d 10,000 the M rhead $41 per direct labor ht ed by dividing pected rhead of $8,131,020 by Und g, the gr increasing the production of the Majestic model Roy $514 ,480 - $966 d M $585 ($1,320 - $735). B this di "g ph. the Roya Sks Schultz prep g acti ty-b "g (ABC). Th rhead the y ded D 31, 2017 Activity Cost Drivers overhead Exporters of Activity-Based overhead Rate Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections $1,290,300 39,100 1,010,820 19,820 5,006,400 823,500 119,200 30,500 $33, $51setup $42/hour $27inspection ch product Purchase orders Royale 16,900 5,820 22,200 39,100 Machine setups Machine hours Inspections 14,000 19,820 74,600 44,600 11,800 18,700 119,200 30,500 2017 rhead products g acti ty-b g (ABC) d d rhead (R to 2 de -g. 12.25.) Royi Total assigned costs Cost per unit 2:10 PM

Explanation / Answer

assignment of manufacturing overhead based on abc:

cost per unit

DM 600 430

DL 120 100

OH 172 382

Cost per unit 892 912

gross profit for royale is (1480-892) = 588

gross profit for majestic is (1320-912) = 408

Particular royale majestic total purchasing 557700 732600 1290300 machine setup 296820 714000 1010820 machining 3133200 1873200 5006400 quality control 318600 504900 823500 total 4306320 3824700 8131020 per unit 172.25 382.47

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