Answer:
Gross profit per unit= $7.28
Explanation:
Giving the following information:
Job #266 consists of:
2,500 tiles; each tile sells for $12.00.
The following direct materials were requisitioned for Job #266:
Basic terra cotta tiles: 2,500 units at $4.00 per unit
Specialty paint: 5 quarts at $7.00 per quart
High gloss glaze: 4 quarts at $12.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 18 hours at $24 per hour
Matthew Kline: 20 hours at $13 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour.
Gross profit= Sales - direct materials - direct labor - manufacturing overhead
Sales= 2500*12= $30,000
Direct materials:
Basic terra cotta tiles: 2,500*$4.00= $10,000
Specialty paint: 5*$7.00= $35
High gloss glaze: 4*$12.00= $48
Total= $10.083
Direct labor:
Alice Cooper: 18*$24= $432
Matthew Kline: 20*$13= $260
Total= $692
Manufacturing overhead= $27*38hours= $1026
Gross profit= 30000 - 10083 - 692 - 1026= $18,199
Gross profit per unit= 18199/2500= $7.28
