Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $190. The direct materials cost is $24 per unit of Diamonds and $31 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 $678,000. 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 per unit B. What is the total gross profit for the year? Total gross profit $ Clubs

Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $190. The direct materials cost is $24 per unit of Diamonds and $31 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 $678,000. 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 per unit B. What is the total gross profit for the year? Total gross profit $ Clubs

Name: Five Card Draw manufactures and sells 24,000 units of Diamonds, which
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Description: Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 26,000 units of Clubs, which retails for $190. The directmaterials cost is $24 per unit of Diamonds and $31 per unit of Clubs. The labor rate is $20 per hour

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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