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
- Part A327: 1 unit costing $70 per monitor
- Part B149: 1 unit costing $100 per monitor
Direct Labor Used
- Assembly: 6 hours per monitor at the rate of $20 per hour
- 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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