Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells $1,580, and a new model, the Majestic, which sells for $1,320. The production cost computed per un under traditional costing for each model in 2017 was as follows. Traditional Costing Royale Majestic $660 $400 Direct materials Direct labor ($20 per hour) 120 100 Manufacturing overhead ($40 per DLH) 240 200 $1,020 $700 Total per unit cost In 2017, 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 expected manufacturin overhead of $8,021,760 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $560 ($1,580 - $1,020) and Majestic $620 ($1,320 - $700). Because of this difference, management is considering phasing out Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks Schultz's controller to prepare an analysis using acti based costing (ABC). The controller accumulates the following information about overhead for the ended December 31, 2017. Activity Estimated Expected Use of Activity-Based Overhead Rate Cost Pools Cost Drivers Overhead Cost Drivers $1,305,600 $32/order Number of orders Purchasing 40,800 $52/setup Machine setups Number of setups 927,160 17,830 $42/hour Machining 120,300 Machine hours 5,052,600 $52/setup Machine setups Number of setups 927,160 17,830 $42/hour Machining 120,300 Machine hours 5,052,600 26,300 $28/inspection Quality control Number of inspections 736,400 The cost drivers used for each product were: Total Cost Drivers Royale Majestic 40,800 Purchase orders 17,900 22,900 Machine setups 4,830 13,000 17,830 Machine hours 75,600 44,700 120,300 Inspections 10,200 16,100 26,300 (a) Assign the total 2017 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.) Majestic Royale $ Total assigned costs $ $ $ Cost per unit