Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,530, 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 Costing Royale Majestic Direct materials $680 $390 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($41 per DLH) 246 205 Total per unit cost $1,046 $695 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,178,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $484 ($1.530-$1,046) and Majestic $575 ($1.270 - $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 ver 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, 2020. Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Activity-Based Overhead Rate Purchasing Number of orders $1,292,800 40,400 $32/order Machine setups Number of setups 994,500 19,500 $51/setup Machining Machine hours 5,095,500 118,500 $43/hour Quality control Number of inspections 795,200 28,400 $28/inspection The cost drivers used for each product were: Cost Drivers Purchase orders Royale Majestic Total 17,000 23,400 40,400 Machine setups 6,000 13,500 19,500 Machine hours 74,000 44,500 118,500 Inspections 12,000 16,400 28,400 Your answer is correct. Assign the total 2020 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 Total assigned costs $ 4368000 Cost per unit iA $ 174.72 Majestic 3810000 381 (b1) Your answer is incorrect. Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, eg. 12.25.) Royale Cost per unit $ Save for Later Majestic Attempts: 1 of 7 used Submit