Schultz Electronics manufactures two large-screen television models: the Royale which sells for $1,600, and a new model, the Majestic, which sells for $1,300. The production cost computed per unit under traditional costing for each model in 2014 was as follows.

Traditional Costing Royale/ Majestic

Direct Materials 700/ 420

Direct Labor($20 per hour) 120/ 100

Manufacturing overhead($38) per DLH 228/ 190

Total per unit cost 1048/ 710

In 2014, 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 Royale $552 or ($1,600 ? $1,048), and Majestic $590 or ($1,300 ? $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, 2014.

Assign the total 2014 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.)

Total assigned costs roy/maj:

Cost per unit roy/maj:

Calculate cost per unit of each model using ABC costing. (Round cost per unit to 2 decimal places, e.g. $12.25.)

cost per unit roy/maj :

Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. $12.25.)

gross profit roy/maj:

The cost drivers used for each product were