X-Industries manufactures 3-D printers. For each unit, $3,400 of direct material is used and there is $2,600 of direct manufacturing 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.
A) $65,320
B) $35,880
C) $11,500
D) $3,250

Question

Quizplus · Accepted Answer

$3,400 + $2,600 + (($2,600 / $16) × $20) = $9,250
Profit earned on 46 units = ($9,500 - $9,250) × 46 units = $11,500

X-Industries Manufactures 3-D Printers