Kevin's Electronics, Inc., delivered 1,200 custom-designed computer monitors to its customer, Gadgets Galore. The following cost information was compiled in connection with this order:
Direct Materials Used
Part A327: 1 unit costing $56 per monitor
Part B149: 1 unit costing $98 per monitor
Direct Labor Used
Assembly:6 hours per monitor at the rate of $8 per hour
Inspection:2 hour per monitor at the rate of $12 per hour
In addition, the company applies manufacturing overhead costs to jobs at the rate of $5 per direct labor hour. The selling price for each monitor is $385.
(a) Determine the total cost for this job.
(b) Determine the gross margin per monitor.
Answer a) Total cost for this... View the full answer