Question: Electronics, Inc., delivered 800 custom-designed computer monitors to its customer, Techno Warrior. The following cost information was compiled in connection with this order: Direct Materials

Electronics, Inc., delivered

800

custom-designed computer monitors to its customer,

Techno Warrior.

The following cost information was compiled in connection with this order:

Direct Materials Used

Part A327: 1 unit costing

$68

per monitorPart B149: 1 unit costing

$90

per monitor

Direct Labor Used

Assembly:

4

hours per monitor at the rate of

$14

per hourInspection:

2

hour per monitor at the rate of

$8

per hour

.....

In addition, the company applies manufacturing overhead costs to jobs at the rate of

$3

per direct labor hour. The selling price for each monitor is

$410.

Requirements

(a) Determine the total cost for this job.

(b) Determine the gross margin per monitor.

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