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 2017 was as follows. Royale Majestic Traditional Costing Direct materials $640 $430 120 100 Direct labor ($20 per hour) Manufacturing overhead ($40 per DLH) 240 200 Total per unit cost $1,000 $730 In 2017, 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 expected manufacturing overhead of $7,969,040 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $580 ($1.580 - $1,000) and Majestic $540 ($1,270 - $730). 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, 2017. Activity Cost Pools Estimated Overhead $1,331,200 Expected Use of Cost Drivers Cost Drivers Number of orders Activity-Based Overhead Rate $32/order Purchasing 41,600 Machine setups Number of setups 913,640 17,570 $52/setup Machining Machine hours 4,952.800 120.800 $41/hour Quality control Number of inspections 771,400 26,600 $29/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 17,900 23,700 41,600 Machine setups 5,370 12.200 17,570 Machine hours 75,800 45,000 120.800 Inspections 10,400 16,200 26,600 Your answer is incorrect. Assign the total 2017 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 $ $ 1 Cost per unit $ $ eTextbook and Media Cost per unit $ $ $ e Textbook and Media * Your answer is incorrect. 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 $ TA e Textbook and Media * Your answer is incorrect. Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, eg. 12.25.) Royale Majestic Gross profit $ e Textbook and Media