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vovikov84 [41]
2 years ago
12

Industries manufactures​ 3-D printers. For each​ unit, $3,400 of direct material is used and there is​ $2,600 of direct manufact

uring 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.
Business
1 answer:
Nana76 [90]2 years ago
4 0

Answer:

The profit earned on 46 units is $11500

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.

<u />

<u>Manufacturing overheads per unit</u>

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            <u>3250</u>

Total cost per unit            9250

Profit per unit = 9500 - 9250 = $250

Profit on 46 units = 250 * 46  =  $11500

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