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 $1,320. 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 ($40 per DLH) Total per unit cost Royale Majestic $600 $400 120 100 240 200 $960 $700 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $7,922,700 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $620 ($1,580 - $960) and Majestic $620 ($1,320 - $700). 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 Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections Estimated Overhead $1,267,200 943,500 4,952,800 759,200 Estimated Use of Activity-Based Cost Drivers Overhead Rate 39,600 $32/order 18,500 $51/setup 120,800 $41/hour 29,200 $26/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,000 22,600 39,600 Machine setups 5,000 13,500 18,500 Machine hours 75,000 45,800 120,800 Inspections 11,000 18,200 29,200 (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.) Royale Majestic | Total assigned costs $ " Cost per unit $ " Save for Later Attempts: 0 of 7 used Submit