Schultz Electronics manufactures two large-screen television models
P4-2A Schultz Electronics manufactures two large-screen television models: the Royale which sells for$1,600 and a new model, the Majestic, which sells for$1,300 The production cost computed per unit under traditional costing for each model is 2014 was as follows.
Traditional Costing
Royale
Majestic
Direct materials
$700
$420
Direct labor ($20 per hour)
120
100
Mfg overhead ($38 per DLH)
228
190
Total per unit cost
$1,048
$710
In 2014, Schultz manufactured25,000 units of the Royale and10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the direct labor hours 200,000 for the two models
Under traditional costing, the gross profit on the models was: Royale $552 or ($1,600 – $1,048) and Majestic $590 or ($1,300 – $710) 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, 2014.
Activity
Cost Driver
EstimatedOverhead
ExpectedUse ofCostDrivers
Activity-BasedOverheadRate
Purchasing
Number of orders
$1,200,000
40,000
$30
per order
Machine setups
Number of setups
900,000
18,000
50
per setup
Machining
Machine hours
4,800,000
120,000
40
per hour
Quality control
Number of inspections
700,000
28,000
25
per inspection
The cost drivers used for each product were:
Cost Driver
Royale
Majestic
Total
Purchase orders
17,000
23,000
40,000
Machine setups
5,000
13,000
18,000
Machine hours
75,000
45,000
120,000
Inspections
11,000
17,000
28,000
Instructions
a. Assign the total 2014 manufacturing overhead costs to the two products using activity-based costing (ABC).
b What was the cost per unit and gross profit of each model using ABC costing?
c Are management’s future plans for the two models sound? Enter your answer in the block below.
Calculate the price of your order
Select your paper details and see how much our professional writing services will cost.
- Freebies
- Format
- Formatting (MLA, APA, Chicago, custom, etc.)
- Title page & bibliography
- 24/7 customer support
- Amendments to your paper when they are needed
- Chat with your writer
- 275 word/double-spaced page
- 12 point Arial/Times New Roman
- Double, single, and custom spacing
-
We care about originality
Our custom human-written papers from top essay writers are always free from plagiarism.
-
We protect your privacy
Your data and payment info stay secured every time you get our help from an essay writer.
-
You control your money
Your money is safe with us. If your plans change, you can get it sent back to your card.
How it works
-
1
You give us the detailsComplete a brief order form to tell us what kind of paper you need.
-
2
We find you a top writerOne of the best experts in your discipline starts working on your essay.
-
3
You get the paper doneEnjoy writing that meets your demands and high academic standards!
Get your own paper from top experts
Order nowPerks of our essay writing service
We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.
Frequently asked questions
Get instant answers to the questions that students ask most often.
See full FAQWhat if I’m dissatisfied with the paper I get?
The average quality score at our professional custom essay writing service is 8.5 out of 10. The high satisfaction rate is set by our Quality Control Department, which checks all papers before submission. The final check includes:- Compliance with initial order details.
- Plagiarism.
- Proper referencing.
I need an essay on the same day. Is it something you can do?
Sure. Our writing company offers a fast service with an 8-hour deadline for orders up to master’s level. Make sure to specify the deadline in the order form and our writers will write a paper within the indicated timeslot. Just proceed to submit your requirements here Once you order a custom-written essay, our managers will assign your order to the well-suited writer, who has the best skills and experience for preparing your specific assignment. You can also request one of these extra features:- Choose the Writer’s Samples option – study 3 randomly-provided pages from orders that have been written by the assigned writer.
- Request a specific writer – choose an academic writer from the dropdown list in the order’s form (optional for returning customers).
How can I be sure your writing service is not a scam?
We understand that a shade of mistrust has covered the paper writing industry, and we want to convince you of our loyalty. Apart from high-quality writing services, we offer:- The chances of students to boost writing skills in a quick and effective way.
- The opportunity to manage studies and free time in an enjoyable manner.
- The possibilities to improve overall academic performance.
Is it legal to use your professional writing service?
Yes. Custom writing help is not prohibited by any university or college. It’s a 100% legal way of getting professional assistance with paper writing. Hiring writers from an essay writing company is in many ways similar to consulting a tutor – we help you solve the writing issues at hand.How does your service work?
Our custom writing service is a reliable solution on your academic journey that will always help you if your deadline is too tight. You fill in the order form with your basic requirements for a paper: your academic level, paper type and format, the number of pages and sources, discipline, and deadline. Then, you describe the specific details of the paper you need: add the topic, write or paste the instructions, and attach files to be used, if you have them. After that, an online customer support representative chooses the best writer that specializes in your discipline and assigns him or her to complete the paper according to your requirements. When the paper is ready, we check it for plagiarism and send it to you. If you want to change something, you can request a free revision.