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for each unit, $3,000 of direct material is used and there is $2,000 of direct manufacturing labor at $20 per hour. manufacturing overhead is applied at $25 per direct manufacturing labor hour. calculate the profit earned on 50 units

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ayokenny2001

Answer:

$10

Explanation:

Per the above information, we need to find out the labor hours consumed by each unit

Manufacturing labor hour per unit = $2,000 ÷ $20 per hour = $100 per unit

The manufacturing overheads per unit = $100 per hour × 25

= $2,500 per unit

The cost per unit of each printer is

Direct material $3,000

Direct labor $2,000

Manufacturing overhead $2,500

Total cost per unit $7,500

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