London Ceramics Makes Custom Ceramic Tiles

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2800 tiles; each tile sells for $13.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2800 units at $9.00 per unit
Specialty paint: 7 quarts at $12.00 per quart
High gloss glaze: 14 quarts at $16.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 24 hours at $31 per hour
Matthew Kline: 24 hours at $17 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour.
What is the gross profit per tile on Job #266?

A) $13.00
B) $2.96
C) $3.89
D) $12.49

Correct Answer:

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