If one unit of Product Z2 used $2.00 of direct materials and $3.40 of direct labor, sold for $11.00, and was assigned overhead at the rate of 25% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

Gross profit = $4.75

Explanation:

Giving the following information:

Product Z2:

$2.00 of direct materials

$3.40 of direct labor.

sold for $11.00.

Designated overhead at the rate of 25% of direct labor costs.

Gross profit = sales - direct material - direct labor - manufacturing overhead

Gross profit = 11 - 2 - 3.4 - (3.4*0.25) = $4.75