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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.

User Taraz
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Answer:

Profit= $106,682.52

Step-by-step 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

User Estelle
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