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Industries manufactures​ 3-D printers. For each​ unit, $3,400 of direct material is used and there is​ $2,600 of direct manufacturing labor at​ $16 per hour. Manufacturing overhead is applied at​ $20 per direct manufacturing labor hour. Calculate the profit earned on 46 units if each unit sells for​ $9,500.

User TYZ
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2 Answers

3 votes

Final answer:

The profit earned on 46 units of 3-D printers is $33,300.

Step-by-step explanation:

To calculate the profit earned on 46 units of 3-D printers, we need to calculate the total cost and the total revenue. First, let's calculate the total cost.

Direct material cost per unit is $3,400, direct labor cost per unit is $2,600, and manufacturing overhead is applied at $20 per direct manufacturing labor hour.

The direct labor hours per unit can be calculated by dividing the direct manufacturing labor cost by the labor cost per hour: $2,600 / $16 = 162.5 hours.

The manufacturing overhead cost per unit can be calculated by multiplying the direct labor hours per unit by the overhead rate: 162.5 hours * $20 = $3,250.

The total cost per unit is the sum of the material cost, labor cost, and overhead cost per unit: $3,400 + $2,600 + $3,250 = $9,250.

Next, let's calculate the total revenue.

Each unit is sold for $9,500, so the total revenue for 46 units is 46 * $9,500 = $437,000.

Finally, to calculate the profit, we subtract the total cost from the total revenue: $437,000 - ($9,250 * 46) = $33,300.

User JesperB
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5 votes

Answer:

The profit earned on 46 units is $11500

Step-by-step explanation:

We first need to determine the cost per unit of 3-D printers. The cost per unit will contain the Direct material, Direct labor and Manufacturing Overheads cost per unit.

Manufacturing overheads per unit

As they are applied on direct manufacturing labor hours, we need to find out the labor hours consumed by each unit.

Manufacturing Labor hour per unit = 2600 / 16 = 162.5 hours

The manufacturing overheads per unit = 162.5 * 20 = $3250 per unit

The cost per unit of each printer is,

Direct Material 3400

Direct Labor 2600

Manufacturing OH 3250

Total cost per unit 9250

Profit per unit = 9500 - 9250 = $250

Profit on 46 units = 250 * 46 = $11500

User Abdullah Shah
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