Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,630, 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. Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead ($43 per DLH) Total per unit cost Royale $650 120 258 Majestic $400 100 215 $1,028 $715 In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $43 per direct labor hour was determined by dividing total expected manufacturing overhead of $8,598,060 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $602 ($1,630 - $1,028) and Majestic $555 ($1,270 - $715). 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. Expected Use of Cost Drivers Activity Cost Pools Purchasing Machine setups Machining Quality control Cost Drivers Number of orders Number of setups Machine hours Number of inspections Estimated Overhead $1,368,500 1,011,960 5,400,000 817,600 39,100 18,740 120,000 29,200 Activity-Based Overhead Rate $35/order $54/setup $45/hour $28/inspection The cost drivers used for each product were: Cost Drivers Total Purchase orders Machine setups Machine hours Inspections Royale 16,700 5,440 74,700 10,800 Majestic 22,400 13,300 45,300 18,400 39,100 18,740 120,000 29,200 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 $ $ Cost per unit $ $ 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 $ $ eTextbook and Media Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Gross profit $ $