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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 Direct materials Direct labor (S20 per hour) Manufacturing overhead ($41 per DLH) Total per unit cost Royale $600 120 246 $966 Majestic $430 100 205 $735 In 2020. Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 541 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,165,700 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $514 ($1,480 - $966) and Majestic $585 ($1,320 - $735). 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 Cost Pools Cost Drivers Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections Estimated Overhead $1,293,600 1,020,000 5,023.200 828,900 Estimated Use of Cost Drivers 39,200 20.000 119.600 30.700 Activity-Based Overhead Rate $33/order $51/setup $42/hour $27/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 17.000 22,200 Machine setups 6.000 14.000 Machine hours 75,000 44,600 Inspections 12.000 18,700 Total 39.200 20.000 119,600 30.700 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, eg. 12.25.) Royale Majestic $ $ Total assigned costs Cost per unit $ $ e Textbook and Media 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 $ $ e Textbook and Media Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Gross profit $ $ e Textbook and Media