Calico Corporation produced 2,000 units in Job 903. The following data is provid

Question

Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year:

Direct materials used

$2300

Direct labor costs

$700

Actual manufacturing overhead rate per direct labor hour

$17.15

Predetermined manufacturing overhead rate per direct labor hour

$18.30

Direct labor hours used in Job 903

35

Direct labor rate per hour

$20

Sales price per unit

$3.50

What is the gross profit for Job 903 before adjustment for over- or underapplied overhead? (Round to two decimal places.)

A.        $3,359.50

B.        $7,000.00

C.        $4,000.00

D.        $4,659.25

Direct materials used

$2300

Direct labor costs

$700

Actual manufacturing overhead rate per direct labor hour

$17.15

Predetermined manufacturing overhead rate per direct labor hour

$18.30

Direct labor hours used in Job 903

35

Direct labor rate per hour

$20

Sales price per unit

$3.50

Explanation / Answer

Sales revenue 7000 =2000*3.5 Costs: Direct materials used 2300 Direct labor costs 700 Overhead 640.5 =35*18.3 Total costs 3640.5 Gross Profit 3359.5 Option A is correct

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