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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.

Traditional Costing		Royale		Majestic
Direct materials		$ 630		$ 410
Direct labor ($20 per hour)		120		100
Manufacturing overhead ($ 42 per DLH)		252		210
Total per unit cost		$ 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 ($ 1,480 $ 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 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		$ 1,397,400		41,100		$ 34/order
Machine setups		Number of setups		925,910		17,470		$ 53/setup
Machining		Machine hours		5,222,800		118,700		$ 44/hour
Quality control		Number of inspections		769,600		29,600		$ 26/inspection

The cost drivers used for each product were:

Cost Drivers		Royale		Majestic		Total
Purchase orders		17,900		23,200		41,100
Machine setups		4,870		12,600		17,470
Machine hours		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, e.g. 12.25.)

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

eTextbook and Media

Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 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, e.g. 12.25.)

		Royale		Majestic
Gross profit		$		$

C https:/ item i-51313 Graules Schultz Eloctronics manufactures two ultra high definition tolovision models: the Royale which solls for $1,480, and a now model, the Majestic which sells for $1,270. The praduction cast camputed per unit under traditional casting for eath model in 2017 as as follows Traditional Costing Royale $630 120 Direct materiala Dire la($20 per hour Manufacturing overhcad($42 per DLH) Total per unit cost 5410 210 $1,002 720 In 201/.Schultz manufactured 25,000 units of the Royale and 10000 units of the Majestic. The overhead rate of $42 per direct labor hour was dotcrmincd by dividing total cxpectod manufacturing ovcrhrad of $8,315,710 by tho total direct labor hours [200,000l for the two models Undler traditicnal costing, the gross profit on the models was Royale 178 1$1,180-$1.002) and Majestic $ 55051,270-$720). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Befurefializing its decision, managenernt asks Schullz's tontroller toprepare an aalysis using ativity-based cusling IABC). The cantreller accurmulales the following information about overhead for the year ended December 31.2017 Activity Cost Pools Cost Drivers Expected Use of Cost Drivers Activity-Based Overhead Rate $34/urder 53sctup $44/hour $26/inspectinn Overhead $1,397400 925,910 5,222.800 769,600 Purchasing Machinc sctups Number uf urdeTS Number of sctups Machine hours Number of inspertians 41,100 17,470 118,700 29,600 Quality control The cost drivers used for cach product were Cost Drivers Royalo Majestic Total Purciase orders Machinc scrups Machine hours 17,300 4,870 74,600 11,600 23.200 12,600 44.100 18.000 41.100 17470 118,700 29,600 Assign uhe lutal 2017 mariuaLLunlig uver head Lusls lu Lhe Lwu pr uiuds usiriy aclivil -based coe Ling ABC and deler mine Lhe unit. (Round cost per unit to 2 decimal places, eg. 12.25 er head coal per lype here to search