Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2020 was as follows.
Traditional Costing
Royale
Majestic
Direct materials $600
$430
Direct labor ($20 per hour) 120
100
Manufacturing overhead ($41 per DLH) 246
205
Total per unit cost $966
$735