Question

Calico Corporation produced 2100 units in Job 903. The following data is provided for Job 903 for the year: Direct materials used $2400​ Direct labor costs $798​ Actual manufacturing overhead rate per direct labor hour $17.15 Predetermined manufacturing overhead rate per direct labor hour $18.60​ Direct labor hours used in Job 903 42​ Direct labor rate per hour $19​What is the total cost of Job 903 before adjustment for over- or underapplied overhead?

Answer 1

Gross profit = $3370.8

Step-by-step explanation:

Given data:

direct material used $2400

Direct labor cost = $798

Actual manufacturing per direct labor hour rate =$17.15

Predetermine manufacturing per direct labor hour rate =$18.60

labor used in Job 903 = 42

labor rate per hour = $19

assume sale per unit =$3.50

`sales\ Revenue = No.\ of\ unit * $3.50 = 2100* 3.5 = 7350`

`over\ head  = direct\ labor * Predetermine\ manufacturing\ per\ direct\ labor\ hour\ rate`

`over head  = 42* 18.60 = $781.2`

Total cost = 2400 + 798 + 781.2 = $3979.2

Gross profit = sales revenue - total cost

= 7350- 3979.2

Gross profit = $3370.8