Question: Berts Electronics Inc. delivered 1,500 custom-designed computer monitors to its customer, Video Shack. The following cost information was compiled in connection with this order: Direct

Bert’s Electronics Inc. delivered 1,500 custom-designed computer monitors to its customer, Video Shack. The following cost information was compiled in connection with this order: 


Direct Materials Used 

  1. Part A327: 1 unit costing $70 per monitor 
  2. Part B149: 1 unit costing $100 per monitor


Direct Labor Used 

  1. Assembly: 6 hours per monitor at the rate of $20 per hour 
  2. Inspection: 1 hour per monitor at the rate of $22 per hour


In addition, the company applies manufacturing overhead costs to jobs at the rate of $15 per direct labor hour. The selling price for each monitor is $500. 


Required 

(a) Determine the total cost for this job. 

(b) Determine the gross margin per monitor.

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