NEXT ORTER VISION BACK Question 2 Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,630, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $650 $400 Direct labor ($20 per hour) 120 100 Manufacturing overhead (543 per DLH) 258 215 Total per unit cost $1,028 $715 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 543 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,603,900 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $602 ($1,630 - $1,028) and Majestic $555 ($1,270 - $715). 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 Schulte'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, 2020. Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1,379,000 39,400 $35/order Machine setups Number of setups 988,200 18,300 $54/setup Machining Machine hours 5,413,500 120,300 $45/hour Quality control Number of inspections 823,200 29,400 $28/inspection The cost drivers used for each product were: s Total The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 17,000 22,400 Machine setups 5,000 13,300 Machine hours 75,000 45,300 Inspections 11,000 18,400 39,400 18,300 120,300 29,400 Assign the total 2020 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 Cost per unit Click if you would like to Show Work for this question: Open Show Work