Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 28,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $29 per unit of Clubs. The labor rate is $30 per hour, and Five Card Draw estimated 184,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated overhead is $736,000. 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 $ ______
Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $160, and 28,000 units of Clubs, which retails for $200. The direct materials cost is $25 per unit of Diamonds and $29 per unit of Clubs. The labor rate is $30 per hour, and Five Card Draw estimated 184,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated
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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