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21 July, 23:32

X minus Industries manufactures 3minusD printers. For each unit, $ 3 comma 500 of direct material is used and there is $ 2 comma 800 of direct manufacturing labor at $ 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 comma 000.

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  1. 21 July, 23:50
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    Profit earned=$21,000

    Explanation:

    Manufacturing Cost total=direct material + direct manufacturing + Total Manufacturing overhead

    Direct Material=$3500

    Direct manufacturing = $2800

    Total Manufacturing overhead = (($2800/12) * 18)

    Total Manufacturing overhead=$4200

    Manufacturing Cost total=$3500+$2800+$4200

    Manufacturing Cost total=$10,500

    Profit earned = ($11,000-$10,500) * 42

    Profit earned=$21,000
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