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X−Industries manufactures 3−D printers. For each​ unit, $2,500 of direct material is used and there is...

X−Industries manufactures 3−D printers. For each​ unit, $2,500 of direct material is used and there is $2,100 of direct manufacturing labor at $10 per hour. Manufacturing overhead is applied at $15 per direct manufacturing labor hour. Calculate the profit earned on 48 units if each unit sells for $8,500.

A.$107,200
B.$120,000
C.$36,000
D. $3150

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Answer #1
Profit on 48 units
Sales revenue $         4,08,000
($8500*48)
Less:
Direct Materials $         1,20,000
($2500*48)
Direct Labor $         1,00,800
($2100*48)
Manufacturing Overhead $         1,51,200
($15 per hour *210*48 hours)
Profit $             36,000
Correct Option: C
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