Schultz Electronics ac two ultra high- definition television models the Royale which sells or $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 vas as follows. Traditional Costing Royale Majestic Direct materials 5640 5430 Direct labor ($20 per hour) 100 Manufacturing overhead ($39 per DLH) 234 195 Total per unit cost 5994 5725 n 2017, Schultz manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $39 per direct labor hour was determined by dividing total expected manufacturin overhead of $7,881,550 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $486 $1.480 - $994) and wajestic $545 ($1,270 - $725). Because of this difference, management is considering phasing out he Royale model and increasing the production of he 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 Cost Ayo Costers Overhead Rate The cost drivers used for each product were: Cost Drive Role motion 10.2001 2000 ( 2) Calculate gross profit of each model using ABC costing. (Round answers to 2 decimal places, e.g. 12.25.) Royale Majestic Gross profit $ e Textbook and Media Attempts: 0 of 5 used