Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1.320. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $650 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42 per DLH) 252 210 Total per unit cost $1,022 $720 In 2020, 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 estimated manufacturing overhead of $8,476,600 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480 - $1,022) and Majestic $600 ($1,320 - $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 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 $1,258,600 40,600 $31/order Machine setups Number of setups 990,000 18,000 $55/setup Machining Machine hours 5,445,000 121,000 $45/hour Quality control Number of inspections 783,000 29,000 $27/inspection 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.) Total assigned costs Cost per unit eTextbook and Media Royale $ Majestic Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Cost per unit $ eTextbook and Media Majestic Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Gross profit Royale $ Majestic Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1.320. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $650 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($42 per DLH) 252 210 Total per unit cost $1,022 $720 In 2020, Schultz 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 $8,476,600 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $458 ($1,480-$1,022) and Majestic $600 ($1,320 - $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 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 $1,258,600 40,600 $31/order Machine setups Number of setups 990,000 18,000 $55/setup Machining Machine hours 5,445,000 121,000 $45/hour Quality control Number of inspections 783,000 29,000 $27/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17.000 23,600 40,600 Machine setups 6,000 12,000 18,000 Machine hours 75.000 46.000 121,000 Inspections 12,000 17,000 29,000 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.) Total assigned costs $ Cost per unit $ eTextbook and Media Royale $ $ Majestic Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, e.g. 12.25.) Cost per unit $ eTextbook and Media Royale Majestic $ Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Gross profit $ Royale Majestic $