Douaces Problem 17-2A 17 ras 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 $1,270. The production cost computed per unit under traditional costing for each model in 2017 was as follows. Tradienal Cesting Reyale Hajstic Drect matenals $650 $420 by Shady Direct labor (s20 per hour) 120 00 Manfacturing evertead ($42 per DUH) 252 210 $1,022 $730 Total per unit cest In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing total expected manufacturing overhead of $8,449,220 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480 $1,022 ) 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, 2017. Activity cost Poots Estimated Overhead Expected Use of Cast Brivere Activity-Based overheat Rate 31ter $52/ Cest Drivers Purchasing Number of onders 261,00 40,700 Nunber of setu Macne sebups 874,120 6,0 Machining Machine hours 5440,500 120.900 $45/hour s2 72,900 Quality cone Number of inspections 30,100 ion The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 23,100 17600 ,700 Machine setups 4510 2,300 6,10 75300 Machine hours 45,600 120,900 nspectons 11300 8,200 30,100 Assign the total 2017 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.) Reyale Majestic Total assigned costs Cost per unit w LAR RCBLE Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majessic Cost per unit s we sLA PRBLE Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Rale Hajesti Gres art Click you would like to show Work for this qestion Open Show work