London Ceramics makes custom ceramic tiles.During March,the company started and finished Job #266.Job #266 consists of 2,500 tiles;each tile sells for $12.00.The company's records show 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.
What is the gross profit per tile on Job #266?

Question

Quizplus · Accepted Answer

B)Direct Materials (2,500 × $4)+ (5 × $7)+ (4 × $12)= $10,083
Direct Labor (18 × $24)+ (20 × $13)= $692
MOH (20 + 18)($27)= $1,026
Then $10,083 + 692 + 1,026 = $11,801 / 2,500 = $4.72
Final step $12.00 - 4.72 = $7.28

London Ceramics Makes Custom Ceramic Tiles