If one unit of Product X5 used $3.20 of direct materials and $4.50 of direct labor, sold for $12.00, and was assigned overhead at the rate of 40% of direct labor costs, how much gross profit was realized from this sale? A. $4.50 B. $2.50 C. $1.80 D. $3.30

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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How much gross profit was realized from this sale on this general accounting question?

If one unit of Product X5 used $3.20 of direct materials and $4.50
of direct labor, sold for $12.00, and was assigned overhead at the
rate of 40% of direct labor costs, how much gross profit was
realized from this sale?
A. $4.50
B. $2.50
C. $1.80
D. $3.30
Transcribed Image Text:If one unit of Product X5 used $3.20 of direct materials and $4.50 of direct labor, sold for $12.00, and was assigned overhead at the rate of 40% of direct labor costs, how much gross profit was realized from this sale? A. $4.50 B. $2.50 C. $1.80 D. $3.30
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