Multiple Choice
London Ceramics makes custom ceramic tiles.During March,the company started and finished Job #266.Job #266 consists of 2,500 tiles;each tile sells for $12.00.The company's records show the following direct materials were requisitioned for Job #266.
Basic terra cotta tiles: 2,500 units at $4.00 per unit
Specialty paint: 5 quarts at $7.00 per quart
High gloss glaze: 4 quarts at $12.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 18 hours at $24 per hour
Matthew Kline: 20 hours at $13 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour.
What is the gross profit per tile on Job #266?
A) $12.00
B) $7.28
C) $7.69
D) $11.59
Correct Answer:
Verified
Correct Answer:
Verified
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