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 ($39 per DLH) Total per unit cost Royale Majestic $600 $400 100 195 $954 $695 120 234 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $ 39 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,875,730 by the total direct labor hours (200,000) for the two models Under traditional costing, the gross proft on the models was Royale $ 626 ($ 1,580 $954) and Majestic $ 625 ($ 1,320 $695). 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 Estimated Expected Use of Activity-Based Overhead Cost Drivers Overhead Rate Cost Pools Purchasing Machine setups Machining Quality control Cost Drivers Number of orders Number of setups Machine hours Number of inspections 39,400 $32/order 18,230 $51/setup $1,260,800 929,730 4,936,400 748,800 120,400 41/hour 28,800 $26/inspection The cost drivers used for each product were Cost Drivers Royale Majestic Total Purchase orders 16,800 22,600 39,400 Machine setups 4,730 13,500 18,230 Machine hours 74,600 45,800 120,400 Inspections 10,600 18,200 28,800 Assign the total 2017 manufacturing overhead costs to the two products using activity-based costing (ABC) and determine the overhead cost per unit. (Round cost per unit to 2 decimal places, eg. 12.25.) Royale Majestic Total assigned costs$ Cost per unit