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 2017 was as follows. Traditional Costing Royale Majestic Direct materials $600 $390 Direct labor ($20 per hour) Manufacturing overhead ($38 per DLH) 120 100 228 190 $948 $680 Total per unit cost In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $38 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,508,000 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $532 ($1,480 $948) and Majestic $590 ($1,270 $680). 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 Estimated Expected Use of Cost Drivers Activity-Based Overhead Rate Cost Pools Cost Drivers Overhead $1.178,000 $31/order Purchasing Number of orders 38,000 Number of setups Machine setups 816,000 16,000 $51/setup Machine hours $41/hour Machining 4,838.000 118.000 26,000 $26/inspection Quality control Number of inspections 676,000 The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 16,000 22,000 38.000 Machine setups 4,000 12,000 16,000 Machine hours 74,000 44,000 118.000 Inspections 10,000 26.000 16,000 (a) 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.) Majestic Royale Total assigned costs $ Cost per unit (b1) Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, eg. 12.25.) Royale Majestic $ Cost per unit