Pima, Inc. manufactures calculators that sell for $49 each. Each calculator uses $18 in direct materials and $8 in direct labor per unit. Pima has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Pima made 430 calculators, using 1,075 machine hours in 43 batches. What is the gross profit for one calculator?

Pima, Inc. manufactures calculators that sell for $49 each. Each calculator uses $18 in direct materials and $8 in direct labor per unit. Pima has two activities: Machining, which is applied at the rate of $4 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, Pima made 430 calculators, using 1,075 machine hours in 43 batches. What is the gross profit for one calculator?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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