Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25)
Royale:
Direct materials: $640
Direct labor: $120
Manufacturing overhead:
Purchasing: $35 x 18,000 / 40,800 = $15.44
Machine setups: $54 x 6,000 / 19,600 = $16.54
Machining: $43 x 75,000 / 119,900 = $26.88
Quality control: $29 x 26,500 / 26,500 = $29.00
Total per unit cost: $640 + $120 + $15.44 + $16.54 + $26.88 + $29.00 = $847.86
Majestic:
Direct materials: $430
Direct labor: $100
Manufacturing overhead:
Purchasing: $35 x 22,800 / 40,800 = $19.44
Machine setups: $54 x 13,600 / 19,600 = $37.44
Machining: $43 x 10,000 / 119,900 = $3.58
Quality control: $29 x 26,500 / 26,500 = $29.00
Total per unit cost: $430 + $100 + $19.44 + $37.44 + $3.58 + $29.00 = $619.46