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.
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Question & Answer: Xminus−Industries manufactures 3−D printers. For each unit, $ 3 500 of direct material is used…..
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|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|
|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|