Hollinger Ceramics makes custom ceramic tiles. During March, the company started and finished Job #755. The company's records show the following direct materials were requisitioned for Job #755.
Plain white tiles: 1,200 units at $5.00 per unit
Specialty paint: 9 quarts at $8.00 per quart
High gloss glaze: 5 quarts at $12.00 per quart
Labor time records show the following employees worked on Job #755:
Steven Hightop: 20 hours at $27 per hour
Andy Pickering: 10 hours at $17 per hour
Hollinger Ceramics allocates manufacturing overhead at a rate of $14 per direct labor hour.
A)Compute the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #755's job cost record.
B)Job #755 consists of 1,200 tiles. If each tile sells for $12.00, what is the gross profit per tile?
Correct Answer:
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