(b1) 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 $ Save for Later Using multiple attempts will impact your score. 10% score reduction after attempt 2 Attempts: 0 of 3 used. Submit Answer Coronado 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 2022 was as follows. Traditional Costing Royale Majestic Direct materials $620 $420 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($41.012 per DLH) 246 205 Total per unit cost $986 $725 In 2022, Coronado manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41.012 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,202,400 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $494 ($1,480 - $986) and Majestic $595 ($1,320 - $725). 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 Coronado'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, 2022. Before finalizing its decision, management asks Coronado'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, 2022. Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Purchasing Number of orders. $1,228,800 38,400 $32/order Machine setups Number of setups 846,600 16,600 $51/setup Machining Machine hours 5,297,600 120,400 $44/hour Quality control Number of inspections 829,400 28,600 $29/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 16,000 22,400 38,400 Machine setups 4,000 12,600 16,600 Machine hours 75,000 45,400 120,400 Inspections 10,000 18,600 28,600