Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 26,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 226,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $904,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. What is the gross profit per unit for Diamonds and Clubs? Gross Profit Diamonds $fill in the blank 1 per unit Clubs $fill in the blank 2 per unit B. What is the total gross profit for the year? Total gross profit $fill in the blank 3
Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 26,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 226,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $904,000. Five Card Draw uses the traditional allocation method based on direct labor hours. A. What is the gross profit per unit for Diamonds and Clubs? Gross Profit Diamonds $fill in the blank 1 per unit Clubs $fill in the blank 2 per unit B. What is the total gross profit for the year? Total gross profit $fill in the blank 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 26,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 226,000 direct labor hours. It takes 4 direct labor hours to manufacture Diamonds and 5 hours for Clubs. The total estimated
A. What is the gross profit per unit for Diamonds and Clubs?
| Gross Profit | ||
| Diamonds | $fill in the blank 1 | per unit |
| Clubs | $fill in the blank 2 | per unit |
B. What is the total gross profit for the year?
Total gross profit $fill in the blank 3
Transcribed Image Text:Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 26,000 units of Clubs, which retails for $200. The direct materials cost is
$25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 226,000 direct labor hours. It takes 4 direct labor hours
to manufacture Diamonds and 5 hours for Clubs. The total estimated overhead is $904,000. Five Card Draw uses the traditional allocation method based on direct labor
hours.
A. What is the gross profit per unit for Diamonds and Clubs?
Gross Profit
Diamonds $
per unit
Clubs
per unit
B. What is the total gross profit for the year?
Total gross profit $
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