Five Card Draw manufactures and sells 23,000 units of Diamonds, which retails for $170, and 26,000 units of Clubs, which retails for $190. The direct materials cost is $25 per unit of Diamonds and $31 per unit of Clubs. The labor rate is $20 per hour, and Five Card Draw estimated 124,000 direct labor hours. It takes 2 direct labor hours to manufacture Diamonds and 3 hours for Clubs. The total estimated overhead is $496,000. 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 $....
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