## Answers

1) | Cost Drivers | royale | majestic | ||||

purchase orders | 623000 | 784000 | |||||

machine setups | 318600 | 718200 | |||||

machining | 3300000 | 2006400 | |||||

quality control | 288900 | 513000 | |||||

total cost assigned | 4530500 | 4021600 | |||||

cost per unit | 181.22 | 402.16 | |||||

2) | cost per unti | ||||||

Royal | majestic | ||||||

Direct materials | 640 | 430 | |||||

Direct labor | 120 | 100 | |||||

overhead cost per unti | 181.22 | 402.16 | |||||

cost per unit | 941.22 | 932.16 | |||||

3) | Gross profit | ||||||

Royal | majestic | ||||||

Sales | 1,630 | 1,320 | |||||

cost per unit | 912.82 | 909.64 | |||||

Gross profit | 717.18 | 410.36 | answer | ||||

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