Before finalizing its decision, management asks Bramble's controller to prepare an analysis using activity-based costing...
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Before finalizing its decision, management asks Bramble'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, 2022 . The cost drivers used for each product were as follows: Bramble Electronics manufactures two HD tolevision models; the Royale, which sells for $1,316, and a new model, the Majestic; which sells for 51.034 . The production costs calculated per unit under traditional costing for each model in 2022 were as follows: In 2022. Bramble manufactured 18,800 units of the Rovale and 9.400 units of the Majeutic. The overhead rate of $35 per direct labouf hour was determined by dividing total estimated manutacturing overhead of $4.6 million by the total direct iabour hours (131.000) for the two models. Under traditional costing, the gross profit on the models was \$477 for the Royale or (\$1.316-\$839), and \$516 for the Majestic or ( $1,034$518). Because of this difference, management is considering phasing out the Roysle model and increasing the production of the Majestic model. Before finalizing its decision management asks Bramble's controller to prepare an anslysis using activity-based costing (ABC). The controller accumilates the following information about overhead for the wear ended December 31,2022 What was the cost per unit and gross profit of each model using ABC costing? (Round answers to 2 decimal places, e.g. 15.25.)
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