Problem 4-2A a, b1-b2 (Video) (Part Level Submission) Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,530, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead ($40 per DLH) ) Total per unit cost Royale $610 120 240 Majestic $410 100 200 $970 $710 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,066,500 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $560 ($1,530 - $970) and Majestic $610 ($1,320 - $710). 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, 2020. Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1,286,400 40,200 $32/order Machine setups Number of setups 991,100 18,700 $53/setup Machining Machine hours 5,061,000 120,500 $42/hour Quality control Number of inspections 728,000 28,000 $26/inspection The cost drivers used for each product were: The cost drivers used for each product were Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 17,000 6,000 75,000 10,000 Majestic 23,200 12,700 45,500 18,000 Total 40,200 18,700 120,500 28,000 (a) 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 s S Cost per unit S By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 0 of 3 used