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

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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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

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