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 $1,270. 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 ($42 per DLH) Total per unit cost Royale Majestic $630 $410 120 100 252 $1,002 210 $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 $8,354,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $478 ($1,480 - $1,002) and Majestic $550 ($1,270 - $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 $1,400,800 41,200 $34/order Machine setups Number of setups 932,800 17,600 $53/setup Machining Machine hours 5,240,400 119,100 $44/hour Quality control Number of inspections 780,000 30,000 $26/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 18,000 23,200 41,200 Machine setups 5,000 12,600 17,600 Machine hours 75,000 Inspections 12,000 44,100 119,100 18,000 30,000 (a) Your Answer Correct Answer (Used) 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 4,489,000 $ 3,865,000 179.56 $ 386.50 (b1) 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 Save for Later Royale Majestic $ Attempts: 0 of 5 used Submit