Requirements s (direct I for Job e of $13 Compute the total amount of direct mat

Question

Requirements s (direct I for Job e of $13 Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job 310's job cost record Job 310 consists of five recliners. If each recliner sells for $725, what is the gross profit per recliner? 1. 2. Print Done units at ads t More Info More Info yards at Lumber: 48 units at $6 per unit Padding: 9 yards at $22 per yard Upholstery fabric: 26 yards at $23 per yard Vince Owens: 8 hours at $9 per hour Jarrod Patten: 13 hours at $20 per hour hours at hours at hours Print Done Print Done

Explanation / Answer

(1)

Direct materials ($) = Lumber + Padding + Upholstery fabric

= 48 x 6 + 9 x 22 + 26 x 23 = 288 + 198 + 598

= 1,084

Direct labor ($) = Wage paid to Vince and Jarrod

= 8 x 9 + 13 x 20 = 72 + 260

= 332

No data for manufacturing overhead is provided, so manufacturing overhead cost is assumed to be zero.

(2)

Total revenue (TR) for 5 recliners = 5 x $725 = $3,625

Total cost (TC) for 5 recliners = Direct material + Direct labor = $(1,084 + 332) = $1,416

Gross profit for 5 recliners = TR - TC = $(3,625 - 1,416) = $2,209

Gross profit for 1 recliner = $2,209 / 5 = $441.80

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.