help

The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers, In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residentiaf customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more aceurate product costing model can be developed. Here are the three activity cost pools and related information she developed Your answer is correct: Compute the activity-based overhead rates for each of the three cost pools. Determine the overhead cost assigned to each product line. Current Attempt in Progress Schultz Electronics manufactures wo ultra high-definition television models; the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. In 2020,5chultz manufactured 25,000 units of the Royale and 10.000 units of the Majestic. The everhead rate of $39 per direct labor hour was determined by dividing total estimated manufacturing overhead of $7,887,400 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Rovale $486 (\$1,480 - $994) and Majestic $545 (\$ $1,270 - $725). Pecause of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic Under traditional costing, the gross profit on the models was Royale $486($1.480$994) and Majestic $545 (\$1.270 - $725). 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, 2020 . The cost drivers used for each product were: The cost drivers used for each product were: (a) Your answer is correct. Assign the totai 2020 manufacturing overhead costs to the two products using activity bared costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, es. 12.25) Assign the total 2020 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, es. 12.25.) eTextbook and Media Attempts: 4 of 5 used (b1) Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal ploces, es. 12.25.) Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, es. 12.25.) eTextbook and Media Attempts: 0 of 5 used (b2) The parts of this question must be completed in order. This part wilibe available when you complete the part above The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers, In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residentiaf customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more aceurate product costing model can be developed. Here are the three activity cost pools and related information she developed Your answer is correct: Compute the activity-based overhead rates for each of the three cost pools. Determine the overhead cost assigned to each product line. Current Attempt in Progress Schultz Electronics manufactures wo ultra high-definition television models; the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. In 2020,5chultz manufactured 25,000 units of the Royale and 10.000 units of the Majestic. The everhead rate of $39 per direct labor hour was determined by dividing total estimated manufacturing overhead of $7,887,400 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Rovale $486 (\$1,480 - $994) and Majestic $545 (\$ $1,270 - $725). Pecause of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic Under traditional costing, the gross profit on the models was Royale $486($1.480$994) and Majestic $545 (\$1.270 - $725). 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, 2020 . The cost drivers used for each product were: The cost drivers used for each product were: (a) Your answer is correct. Assign the totai 2020 manufacturing overhead costs to the two products using activity bared costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, es. 12.25) Assign the total 2020 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, es. 12.25.) eTextbook and Media Attempts: 4 of 5 used (b1) Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal ploces, es. 12.25.) Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, es. 12.25.) eTextbook and Media Attempts: 0 of 5 used (b2) The parts of this question must be completed in order. This part wilibe available when you complete the part above