please help answer

Assign overhead to products sing ABC and evaluate P17-2A Schultz Electronics manmfactures two ultra high-definitionn television models: the Royale which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The pro- duction cost computed perunit under traditional costing for each model in 2017 was as follows. decision (L0 21, P Traditional Costing Royale Majestic Direct materials Direct labor ($20 per hour) Manufacturing overhead ($38 per DLH) 700 120 $420 100 XLS 228 190 Total per unit cost $1,048 $710 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross profit on the models was Roynle $552 ($1,600 - $1,048) and Majestic $590 ($1,300- $710). Because of this difference, management is con- sidering 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 in- formation about overhead for the year ended December 31, 2017. Activity Based Overhead Expected Use of Estimated Activity Cost Pools Cost Drivers Overhead Cost Drivers Rate Purchasing Machine setups Machining Quality control Number of orders Number of setups $1,200,000 900,000 4,800,000 $30order $50setup $40/hour $25/inspection 40,000 18.000 Machine hours 120,000 Number of inspections 700,000 28,000 Problems Set A 875 The cost drivers used for each product were Cost Drivers Royale 17,000 Majestic Total Purchase orders 23,000 40,000 18,000 Machine setups Machine hours 5.000 13.000 75,000 45,000 120,000 Inspections 11,000 17,000 28,000 Instructions (a) Assign the total 2017 manufacturing overhead costs to the two products using activity based costing (ABC) and determine the overhead cost per unit. (b) What was the cost per unit and gross profit of each model using ABC? (c)- (a) Royale $4,035,000 (bl Cost/unit-Royale $981,40 Are management's future plans for the two models sound? Explain