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 Royale Majestic $640 $430 Direct materials Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42 per DLH) 252 210 $1,012 $740 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 $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-Based Overhead Rate Expected Use of Cost Drivers Estimated Overhead Activity Cost Pools Cost Drivers $35/order 40,500 $1417,500 Number of orders Purchasing $54/setup 19420 1,048,680 Number of setups Machine setups $43/hour 119400 5,134,200 Machine hours Machining 26,800 $29/inspection 777,200 Quality control Number of inspections $54/setup $43/hour 19,420 1,048,680 Number of setups Machine setups 119400 Machine hours 5,134,200 Machining 26,800 $29inspection 777,200 Quality control Number of inspections The cost drivers used for each product were: Total Cost Drivers Royale Majestic Purchase orders 17,700 22.800 40,500 Machine setups 5,820 19,420 13,600 44,900 119,400 Machine hours 74,500 26,800 Inspections 10,300 16,500 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-s. 12.25.) Majestic Royale $ 4435980 3941600 Total assigned costs Cost per unit eTextbook and Media Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Majestic Royale $ Cost per unit eTextbook and Media Royale Majestic $ Total assigned costs 4435980 3941600 Cost per unit eTextbook and Media 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 eTextbook and Media Calculate gross profit of each model using ABC costing. (Round answers to 2 decimol places, e.g. 12.25.) Majestic Royale Gross profit eTextbook and Media Submit An Attempts: 0 of 5 used Save for Later Nex