Waterway Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $1,530, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2025 was as follows. Traditional Costing Royale Majestic Direct materials $690 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($41.271 per DLH) 248 206 Total per unit cost $1,058 $716 In 2025, Waterway manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $41.271 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8.254,100 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $472 ($1.530-$1,058) and Majestic $604 ($1.320-$716). 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 Waterway'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, 2025. Activity-Based Overhead Rate Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Purchasing Number of orders $1,264,800 40,800 $31/order Machine setups Number of setups 1,006,500 18,300 $55/setup Machining Machine hours 5,142,800 119,600 $43/hour Quality control Number of inspections 840,000 28,000 $30/inspection The cost drivers used for each product were: Cost Drivers Royale Majestic Total Purchase orders 18,000 22,800 40,800 Machine setups 6,000 12.300 18,300 Machine hours 74,000 45,600 119,600 Inspections 11,000 17,000 28,000 (a) Assign the total 2025 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, eg. 12.25) Royale Majestic Total assigned costs $ $ Cost per unit $ $