Kevin's Electronics, Inc., delivered 1,200 custom-designed computer monitors to its customer, Gadgets Galore. The following cost information was compiled in connection with this order:1 Direct Materials Used:1 a. Part A327: 1 unit costing $56 per monitor. b. Part B149: 1 unit costing $98 per monitor. Direct Labor Used: Assembly: 6 hours per monitor at the rate of $8 per hour. Inspection: 2 hour per monitor at the rate of $12 per hour. In addition, the company applies manufacturing overhead costs to jobs at the rate of $5 per direct labor hour. The selling price for each monitor is $385.1 Requirements:1 a. Determine the total cost for this job. b. Determine the gross margin per monitor.
Kevin's Electronics, Inc., delivered 1,200 custom-designed computer monitors to its customer, Gadgets Galore. The following cost information was compiled in connection with this order:1 Direct Materials Used:1 a. Part A327: 1 unit costing $56 per monitor. b. Part B149: 1 unit costing $98 per monitor. Direct Labor Used: Assembly: 6 hours per monitor at the rate of $8 per hour. Inspection: 2 hour per monitor at the rate of $12 per hour. In addition, the company applies manufacturing overhead costs to jobs at the rate of $5 per direct labor hour. The selling price for each monitor is $385.1 Requirements:1 a. Determine the total cost for this job. b. Determine the gross margin per monitor.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 1MC: Active Frame, Inc., manufactures clear and tinted sport glasses. The manufacturing of clear glasses...
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