100 200 Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, 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. Traditional Costing Royale Majestic Direct materials $640 $430 Direct labor ($20 per hour) 120 Manufacturing overhead ($40 per DLH) 240 Total per unit cost $1,000 $730 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $7,949,600 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $580 ($1,580 - $1,000) and Majestic $540 ($1,270 - $730). 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. Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1,334,400 41,700 $32/order Machine setups Number of setups 894.400 17,200 $52/setup Machining Machine hours 4,961,000 121,000 $41/hour Number of inspections Quality control 759,800 26,200 $29/inspection The cost drivers used for each product were: Total Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 18,000 5,000 76,000 10,000 Majestic 23,700 12,200 45,000 16,200 41,700 17,200 121,000 26,200 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, 0.9. 12.25.) Royale Majestic Total assigned costs Cost per unit Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Cost per unit Cost per unit Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Cost per unit Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, 0.g. 12.25.) Royale Majestic Gross profit