Lily Electronics manufactures two ultra$-$high$-$definition television models: the Royale, which sells for $$1,480,$ and a new model, the The cost drivers used for each product were: Your answer is correct.

Assign the total $2027$ 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$.12\mathrm{.}25.)$ Calculate cost per unit of each model using ABC costing. $($Round answers to $2$ decimal places, e$.$g$.12\mathrm{.}25.)$

Majestic, which sells for $$1,320.$ The production cost computed per unit under traditional costing for each model in $2027$ was as

follows.

In $20272027,$ Lily manufactured $25,000$ units of the Royale and $10,000$ units of the Majestic. The overhead rate of $$40\mathrm{.}494$ per direct

labor hour was determined by dividing total estimated manufacturing overhead of $$8,098,800$ by the total direct labor hours

$(200,000)$ for the two models.

Under traditional costing, the gross profit on the models was Royale $$457($ $$1,480-$ $$1,023)$ and Majestic $$598($$$1,320-$ $$722).$

Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic

model.

Betore finalizing its decision, management asks Lily's controller to prepare an analysis using activity$-$based costing $($ABC$).$ The

controller accumulates the following information about overhead for the year ended December $31,2027.$