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24 December, 17:21

Xminus-Industries manufactures 3minus-D printers. For each unit, $ 3 comma 200$3,200 of direct material is used and there is $ 2 comma 300$2,300 of direct manufacturing labor at $ 15$15 per hour. Manufacturing overhead is applied at $ 18$18 per direct manufacturing labor hour. Calculate the profit earned on 4242 units if each unit sells for $ 10 comma 800$10,800.

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  1. 24 December, 19:51
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    Profit = $106,682.52

    Explanation:

    Giving the following information:

    Unitary Variable costs:

    Direct material = 3,200

    Direct labor = $2,300 ($15 per hour) = 153.33 hours

    Manufacturing overhead is applied at $18 per direct labor hour.

    Units sold = 42

    Selling price = $10,800

    Profit = Total sales - total variable cost

    Profit = 42*10,800 - (3,200 + 2300 + 18*153.33) * 42 = $106,682.52
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