If one unit of Product X used $2.50 of direct materials and - 10475

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yousafbhutta

yousafbhutta

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  • From: Business,
  • Posted on: Mon 28 May, 2012
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Request Description

 

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

 

Answer

 

 

$8.00.

 

$5.50.

 

$2.50.

 

$1.60.

 

$0.90.

 

Solution Description

 

If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

 

Answer