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Xminus−Industries manufactures 3−D printers. For each unit, $ 3 500 of direct material is used and there is $2,800
of direct manufacturing labor a $12 per hour. Manufacturing overhead is applied at $18 per direct manufacturing labor hour. Calculate the profit earned on 42 units if each unit sells for $11,000.
Expert Answer
| (in $) | ||
| Direct Material | 3500 | |
| Direct Manufacturing Labour | 2800 | |
| Manufacturing Overhead (233.33 hours * $ 18) | 4200 | |
| Per Unit Cost | 10500 | |
| Profit Per Unit | ||
| Sales Price Per Unit | 11000 | |
| Less | Per Unit Cost | 10500 |
| 500 | ||
| Profit on 42 units | ||
| (Profit Per units * 42 units) | 500 * 42 | |
| Profit on 42 units | $ 21000 (Answer) | |
| Direct Manufacturing Labour Hour = | Direct Manufacturing Labour Cost / Labour hour cost | |
| 2800 / 12 | ||
| 233.33 hours |
