Show Attempt History Current Attempt in Progress 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 2020 was as follows. Traditional Costing Royale Majestic Direct materials $600 $430 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($41 per DLH) 246 205 Total per unit cost $966 $735 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,135,200 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $664 ($1,630 - $966) and Majestic $535 ($1,270 - $735). 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