(Solved): The cost drivers used for each product were: Cost Drivers Purchase orders Machine setups Machine hou ...

The cost drivers used for each product were: (a) Your answer is incorrect. Assign the total 2025 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.s. 12.25.) Sunland Electronics manufactures two ultra-high-definition television models: the Royale, which sells for $\$1.630$, and a new model. the Majestic, which sells for $\$1,270$. The production cost computed per unit under traditional costing for each model in 2025 was as follows. In 2025, Sunland manufactured 25,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $\$40,676$ per direct labor hour was determined by dividing total estimated manufacturing overhead of $\$8,135,200$ by the total direct labor hours $(200,000)$ for the two models: Under traditional costing, the gross profit on the models was Royale \$666 (\$1,630 - \$964) and Majestic \$537 (\$1,270 - \$733). 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 Sunland's controller to prepare an analysis using activity-based costing (ABC). The controller accumulates the following information about overhe ad for the year ended December 31,2025 Under traditional costing, the gross profit on the models was Royale $\$666(\$1,630?\$964)$ and Majestic $\$537(\$1,270?\$733)$. Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majesti model. Before finalizing its decision, management asks Sunland'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, 2025.