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 $1.270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Casting Royale Majestic Direct materials $640 5410 Direct labor (520 per hour) 120 100 Manufacturing overhead (642 per DLH) 252 210 Total per unit cost 51,012 5720 In 2020, Schulta manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 542 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,421,200 by the total direct labor hours (200,000) for the two models, Under traditional costing, the gross profit on the models was Royale 568 (51,580 - $1,012) and Majestic 5550 (61.270 - $720). 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 Schultz's controller to prepare an analysis using activity-based coating (ABC). The controller actumulates the following information about overhead for the year anded December 31, 2020 Activity Estimated Estimated Use of Activity-Based Cost Pools Coat Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1,215,200 39.200 $31/order Machine setups Number of setups 1,006,500 10.300 $55/up Machining Machine hours 5,360,500 119,300 545/hour Quality control Number of inspections 031.000 27,700 $30/inspection The cost drivers used for each product were: Cost Drivers Purchase orders Machine setups Machine hours Inspections Royale 17,000 5,000 75,000 11,000 Majestic 22,200 13,300 44,300 16,700 Total 39,200 18,300 119,300 27,700 (a) Assign the total 2020 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per un places, e.g. 12.25.) Royale Majestic Total assigned costs Cost per unit Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Cost per unit 927.48 900.04 Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Gross profit 552.52 369.96