Problem 17-02A a, bl-b2 (Part Level Submission) Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model, the Majestic, which seils for $1,270. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $660 $410 Direct labor ($20 per hour) 120 100 Manufacturing overhead (540 per DLH) 240 200 Total per unit cost $1,020 $710 In 2020, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of 540 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,052,900 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $560 ($1,580 - $1,020) and Majestic $560 (51,270 - $710). 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, 2020. Activity Estimated Estimated Use of Activity-Based Cost Pools Cost Drivers Overhead Cost Drivers Overhead Rate Purchasing Number of orders $1,248,000 39,000 $32/order Machine setups Number of setups 918,000 18,000 $51/ setup Machining Machine hours 5,077,800 120,900 $42/hour Quality control Number of inspections 809,100 27,900 $29/inspection The cost drivers used for each product were: The cost drivers used for each product were: Cost Drivers Royale Majestic Purchase orders 16,000 23,000 Machine setups 5,000 13,000 Machine hours 76,000 44,900 Inspections 11,000 16,900 Total 39,000 18,000 120,900 27,900 Your answer is incorrect. Try again. Assign the total 2020 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 4308000 3929200 Cost per unit 172.32 392.92 Click if you would like to Show Work for this question Open Show Work