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 $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows Majestic $410 Traditional Costing Royale Direct materials $640 Direct labor ($20 per hour) 120 100 210 Manufacturing overhead ($42 per DLH 252 $1,012 $720 Total per unit cost 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 $8,421,200 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Rovale $568 ($1,580-$1,012 ) 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-Based Overhead Rate Estimated Use of Cost Drivers Activity Cost Pools Estimated Overhead Cost Drivers Number of orders 39,200 $31/order Purchasing $1,215,200 $55/setup 18,300 Number of setups 1,006,500 Machine setups 5,368.500 119,300 $45/hour Machine hours Machining $30/inspection 831,000 27,700 Number of inspections Quality control The cost drivers used for each product were: Total Royale Majestic Cost Drivers 39,200 22,200 17,000 Purchase orders 13,300 18,300 5,000 Machine setups 119,300 75,000 44,300 Machine hours 27,700 11,000 16,700 Inspections Your answer is incorrect. Try again. 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.) Majestic Royale Total assigned costs 370.76 Cost per unit 370.76 Your answer is incorrect. Try again. Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g 12.25.) Royale Majestic Cost per unit 370.76 Your answer is incorrect. Try again. Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g 12.25.) Royale Majestic Gross profit 169.68 370.76