Crane 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 2022 was as follows.

Traditional Costing		Royale			Majestic
Direct materials		$ 640			$ 410
Direct labor ($20 per hour)		120			100
Manufacturing overhead ($ 42.106 per DLH)		253			211
Total per unit cost		$ 1,013			$ 721

In 2022, Crane manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $ 42.106 per direct labor hour was determined by dividing total estimated manufacturing overhead of $ 8,421,200 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $ 567 ($ 1,580 $ 1,013) and Majestic $ 549 ($ 1,270 $ 721). 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 Cranes 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		$ 1,215,200		39,200			$ 31/order
Machine setups		Number of setups		1,006,500		18,300			$ 55/setup
Machining		Machine hours		5,368,500		119,300			$ 45/hour
Quality control		Number of inspections		831,000		27,700			$ 30/inspection

The cost drivers used for each product were:

Cost Drivers		Royale			Majestic			Total
Purchase orders		17,000			22,200			39,200
Machine setups		5,000			13,300			18,300
Machine hours		75,000			44,300			119,300
Inspections		11,000			16,700			27,700

(a)

Assign the total 2022 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, e.g. 12.25.)

		Royale		Majestic
Total assigned costs		$ enter a dollar amount		$ enter a dollar amount
Cost per unit		$ enter a dollar amount rounded to 2 decimal places		$ enter a dollar amount rounded to 2 decimal places

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