Schultz Electronics manufactures two ultra high$-$definition 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 $2020$ was as

follows.

In $2020,$ 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 estimated 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 $-$ $$1,048$ and Majestic $$590($$$1,300-$$$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 $31,2020.$