Indigo Electronics manufactures two HD television models: the Royale, which sells for $1,708, and a new model, the Majestic, which sells for $1,342. The production costs calculated per unit under traditional costing for each model in 2022 were as follows: Traditional Costing Royale Majestic Direct materials $732 $382 Direct labour ($20 per hour) 100 80 Manufacturing overhead ($35 per direct labour hour) Total per unit cost 175 140 $1,007 $602 In 2022, Indigo manufactured 24,400 units of the Royale and 12,200 units of the Majestic. The overhead rate of $35 per direct labour hour was determined by dividing total estimated manufacturing overhead of $6.0 million by the total direct labour hours (170,800) for the two models. Under traditional costing, the gross profit on the models was $701 for the Royale or ($1,708 - $1,007), and $740 for the Majestic or ($1,342 - $602). 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 Indigo'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 Estimated Use Activity-Based Overhead Rate Purchasing Cost Drivers Number of orders Estimated Overhead $915,000 of Cost Drivers 30,500 $30 per order Machine set-ups Number of set-ups 732,000 24,400 $30 per set-up Machining Machine hours 3,782,000 122,000 $31 per hour Quality control Number of inspections 549,000 6,100 $90 per inspection The cost drivers used for each product were as follows: Cost Drivers Royale Majestic Total Purchase orders 13,725 16,775 30,500 Machine set-ups 12,200 12,200 24,400 Machine hours Inspections 48,800 73,200 122,000 2,745 3,355 6,100 (a) Your answer is correct. Assign the total 2022 manufacturing overhead costs to the two products using activity-based costing (ABC). (Round answers to 2 decimal places, e.g. 15.25.) (b) Per unit overhead cost eTextbook and Media Royale Using multiple attempts will impact your score. 15% score reduction after attempt 1 Majestic 104 $ 282 What was the cost per unit and gross profit of each model using ABC casting? (Round answers to 2 decimal places, e.g. 15.25.) Per unit cost $ Gross profit per unit $ Royale Majestic $ S