Vaughn Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $ 1,480, and a new model, the Majestic, which sells for $ 1,320. The production cost computed per unit under traditional costing for each model in 2022 was as follows.

Traditional Costing		Royale			Majestic
Direct materials		$ 600			$ 430
Direct labor ($20 per hour)		120			100
Manufacturing overhead ($ 40.829 per DLH)		245			204
Total per unit cost		$ 965			$ 734

In 2022, Vaughn manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $ 40.829 per direct labor hour was determined by dividing total estimated manufacturing overhead of $ 8,165,700 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $ 515 ($ 1,480 $ 965) and Majestic $ 586 ($ 1,320 $ 734). 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 Vaughns 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.

Activity Cost Pools		Cost Drivers		Estimated Overhead		Estimated Use of Cost Drivers			Activity-Based Overhead Rate
Purchasing		Number of orders		$ 1,293,600		39,200			$ 33/order
Machine setups		Number of setups		1,020,000		20,000			$ 51/setup
Machining		Machine hours		5,023,200		119,600			$ 42/hour
Quality control		Number of inspections		828,900		30,700			$ 27/inspection

The cost drivers used for each product were:

Cost Drivers		Royale			Majestic			Total
Purchase orders		17,000			22,200			39,200
Machine setups		6,000			14,000			20,000
Machine hours		75,000			44,600			119,600
Inspections		12,000			18,700			30,700

(a)

Assign the total 2022 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		$ enter a dollar amount		$ enter a dollar amount
Cost per unit		$ enter a dollar amount rounded to 2 decimal places		$ enter a dollar amount rounded to 2 decimal places