PPR Inc manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. PPp has two activities. Machining. which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, PPP made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw? Select one: O a. $47 O b $27 C $13 O d s31

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PPR Inc manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. PPp has two activities. Machining.
which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, PPP made 200 chainsaws, using
1,000 machine hours in 40 batches. What is the gross profit for one chainsaw?
Select one:
O a. $47
O b $27
C $13
O d s31
Transcribed Image Text:PPR Inc manufactures chainsaws that sell for $58. Each chainsaw uses $10 in direct materials and $3 in direct labor per unit. PPp has two activities. Machining. which is applied at the rate of $2 per machine hour, and Finishing, which is applied at the rate of $20 per batch. This month, PPP made 200 chainsaws, using 1,000 machine hours in 40 batches. What is the gross profit for one chainsaw? Select one: O a. $47 O b $27 C $13 O d s31
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