In a recent annual report, Apple Computer reported the following in one of its disclosure notes: "Warranty Expense: The Company
1 answer:
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Answer:
The appropriate answer is "$8,457,50".
Explanation:
The given values are:
Direct material cost,
= $9,500
Direct labor cost,
= $10,400
Units completed in job 412,
= 4
Now,
The total cost for completion of job 412 will be:
=
On substituting the values, we get
=
= ($)
Unit produced cost will be:
=
= ($)
70% of unit produced cost will be the profit margin, then
=
= ($)
hence,
The price charged to the customer will be:
=
On substituting the values, we get
=
= ($)