Current Attempt in Progress Schultz 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 2017 was as follows Royale Majestic $630 $410 Traditional Costing Direct materials Direct labor ($20 per hour) Manufacturing overhead (542 per DLH) Total per unit cost 120 100 252 210 $1,002 $720 in 2017. Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic The overhead rate of $42 per direct labor hour was determined by dividing total expected manufacturing overhead of $8.315,710 by the total direct labor hours (200,000) for the two models. Under traditional costing the gross profit on the models was Royale $478 ($1480 - $1.002) and Majestic $550 ($1.270 - $720), 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 costine (ABC) The controller accumulates the following information about overhead for the year ended December 31, 2017 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 controller accumulates the following information about overhead for the year ended December 31, 2017 Estimated Overhead Expected Use of Activity-Based Cost Drivers Overhead Rate $1,397,400 41,100 $34/order Activity Cost Pools Cost Drivers Purchasing Number of orders Machine setups Number of setups Machining Machine hours Quality control Number of inspections 925,910 17,470 $53/setup 5,222,800 118,700 $44/hour 769,600 29,600 $26/inspection The cost drivers used for each product were: Majestic Total Royale 17.900 23,200 41,100 Cost Drivers Purchase orders Machine setups Machine hours 4,870 12,600 17.470 74,600 44,100 118,700 Inspections 11,600 18,000 29,600 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, es. 12.25.) Royale Majestic Total assigned costs $ $ Cost per unit e Textbook and Media Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places es. 12.25) Royale Majestic Cost per unit Calculate cost per unit of each model using ABC costing (Round answers to 2 decimal places, eg. 12.25.) Royale Majestic Cost per unit $ eTextbook and Media Calculate gross profit of each model using ABC costing (Round answers to 2 decimal places, eg. 12.25.) Royale Majestic Gross profit $ e Textbook and Media