4-2A

Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,530, and a new model, the Majestic, which sells for $1,270. The production cost computed per unit under traditional costing for each model in 2017 was as follows.

Traditional Costing	Royale	Majestic
Direct materials	$640	$400
Direct labor ($20 per hour)	120	100
Manufacturing overhead ($40per DLH)	240	200
Total per unit cost	$1,000	$700

In 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40per direct labor hour was determined by dividing total expected manufacturing overhead of $8,063,250by the total direct labor hours (200,000) for the two models.

Under traditional costing, the gross profit on the models was Royale $530 ($1,530 $1,000) and Majestic $570 ($1,270 $700). 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 Schultzs 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 Cost Pools	Cost Drivers	Estimated Overhead	Expected Use of Cost Drivers	Activity-Based Overhead Rate
Purchasing	Number of orders	$1,283,200	40,100	$32/order
Machine setups	Number of setups	1,055,450	19,190	$55/setup
Machining	Machine hours	5,014,800	119,400	$42/hour
Quality control	Number of inspections	709,800	27,300	$26/inspection

The cost drivers used for each product were:

Cost Drivers	Royale	Majestic	Total
Purchase orders	16,500	23,600	40,100
Machine setups	5,790	13,400	19,190
Machine hours	74,500	44,900	119,400
Inspections	10,900	16,400	27,300

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.)

How do I calcite the total assigned costs and cost per unit here

Royale	Majestic
Total assigned costs	$	$
Cost per unit	$	$