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 Direct materials Direct labor ($20 per hour) Manufacturing overhead ($41 per DLH) Total per unit cost Royale Majestic $640 $400 120 100 246 $1,006 205 $705 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 $8,114,400 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $524 ($1,530 - $1,006) and Majestic $565 ($1,270 - $705). 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 Estimated Estimated Use of Cost Drivers Overhead Cost Drivers Activity-Based Overhead Rate Purchasing Number of orders $1,299,200 40,600 $32/order Machine setups Number of setups 1,067,000 19,400 $55/setup Machining Machine hours 5,035,800 119,900 $42/hour Quality control Number of inspections 712,400 27,400 $26/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,000 23,600 40,600 Machine setups Machine hours Inspections 6,000 75,000 11,000 13,400 19,400 44,900 119,900 16,400 27,400 (a) 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 $ Royale Majestic $ $