If one unit of Product Z2 used $2.00 of direct materials and $3.40 of direct labor, sold for $11.00, and was assigned overhead a

Question

3 years ago

14

If one unit of Product Z2 used $2.00 of direct materials and $3.40 of direct labor, sold for $11.00, and was assigned overhead a

t the rate of 25% of direct labor costs, how much gross profit was realized from this sale? (Round your intermediate calculations and final answer to two decimal places.)

Business

1 answer:

zheka24 [161] · Answer 1 · 2021-12-02T14:41:55+03:00

Answer:

Gross profit= $4.75

Explanation:

Giving the following information:

Product Z2:

$2.00 of direct materials

$3.40 of direct labor.

sold for $11.00.

Designated overhead at the rate of 25% of direct labor costs.

Gross profit= sales - direct material - direct labor - manufacturing overhead

Gross profit= 11 - 2 - 3.4 - (3.4*0.25)= $4.75