Question

XminusIndustries manufactures 3minusD printers. For each​ unit, $ 2 comma 800 of direct material is used and there is $ 1 comma 900 of direct manufacturing labor at $ 20 per hour. Manufacturing overhead is applied at $ 25 per direct manufacturing labor hour. Calculate the profit earned on 52 units if each unit sells for $ 9 comma 200.

Answer 1

the profit earned on 52 units is $110,500

Step-by-step explanation:

Profit = Sales - Cost of Sales

First determine the cost of sales

Hint : Prepare a manufacturing cost schedule

Direct Materials ($ 2,800 × 52 units) = $145,600

Direct Labor ($ 1,900 × 52 units) = $98,800

Manufacturing Overheads ($25 × 95 hours × 52 units) = $123,500

Total Cost =$367,900

Then determine the Profit

Sales ($9,200 × 52 units) = $478,400

Less Cost of manufacture = ($367,900)

Net Income / (Loss) = $110,500

Conclusion :

Calculate the profit earned on 52 units is $110,500