Swifty 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 2022 was as follows. Traditional Costing Royale Majestic Direct materials $640 $430 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($39.437 per DLH) 237 197 Total per unit cost $997 $727 In 2022, Swifty manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $39.437 per direct labor hour was determined by dividing total estimated manufacturing overhead of $7,887,400 by the total direct labor hours (200,000) for the two models. Under traditional costing the gross profit on the models was Royale $483 ($1,480-$997) and Majestic $543 ($1.270-$727). 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 Swifty'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, 2022.