Use the information below to answer the following question(s).
Sierra Ceramics makes custom ceramic tiles. During March, the company started and finished Job #231. Job #231 consists of 2,000 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #231.
Basic terra cotta tiles: $\quad $2,000 units at $2.00 per unit
Specialty paint:$\quad $$\quad $$\quad $ 5 quarts at $4.00 per quart
High gloss glaze: $\quad $$\quad $3 quarts at $10.00 per quart

Labour time records show the following employees worked on Job #231:
Emily Jergens: $\quad $$\quad $$\quad $20 hours at $22 per hour
Dan Evrard: $\quad $$\quad $$\quad $$\quad $12 hours at $15 per hour

Sierra Ceramics allocates manufacturing overhead at a rate of $25 per direct labour hour.
-What is Sierra Ceramics' gross profit per tile on Job #231?

Question

Use the information below to answer the following question(s).
Sierra Ceramics makes custom ceramic tiles. During March, the company started and finished Job #231. Job #231 consists of 2,000 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #231.
Basic terra cotta tiles: $\quad $2,000 units at $2.00 per unit
Specialty paint:$\quad $$\quad $$\quad $ 5 quarts at $4.00 per quart
High gloss glaze: $\quad $$\quad $3 quarts at $10.00 per quart

Labour time records show the following employees worked on Job #231:
Emily Jergens: $\quad $$\quad $$\quad $20 hours at $22 per hour
Dan Evrard: $\quad $$\quad $$\quad $$\quad $12 hours at $15 per hour

Sierra Ceramics allocates manufacturing overhead at a rate of $25 per direct labour hour.
-What is Sierra Ceramics' gross profit per tile on Job #231?

Quizplus · Accepted Answer

Total direct materials cost: (2,000 × $2.00) + (5 × $4.00) + (3 × $10.00) = $4,030.00
Total direct labour cost: (20 hours × $22 per hour) + (12 hours × $15 per hour) = $570
Manufacturing overhead cost: $25 × (20 + 12) = $800
Total job cost: $4,030.00 + $570.00 + $800.00 = $5,400.00
Gross profit per tile: ($12.00 selling price) - ($5,400.00 ÷ 2,000 tiles) = $9.27

Use the Information Below to Answer the Following Question(s) \quad

Use the Information Below to Answer the Following Question(s) $\quad$