Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2017 was as follows. Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead ($42 per DLH) Total per unit cost Royale Majestic $640 $430 120 100 252 $1,012 $740 210 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $42 per direct labor hour was determined by dividing total expected manufacturing overhead of $8,377,580 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $568 ($1,580 - $1,012) and Majestic $580 ($1,320 - $740). 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, 2017. Activity Cost Pools Cost Drivers Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections Estimated Overhead $1,417,500 1,048,680 5,134,200 777,200 Expected Use of Activity-Based Cost Drivers Overhead Rate 40,500 $35/order 19,420 $54/setup 119,400 $43/hour 26,800 $29/inspection The cost drivers used for each product were: The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,700 22,800 40,500 Machine setups 5,820 13,600 19,420 Machine hours 74,500 44,900 119,400 Inspections 10,300 16,500 26,800 X Your answer is incorrect. 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.) Royale Majestic Total assigned costs $ 4418280 3918800 Cost per unit $ 4418280 3918800