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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Job cost Ernie’s Electronics, Inc., delivered 1,000 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 $60 per monitor
Part B149: 1 unit costing $120 per monitor
Direct Labor Used
Assembly: 6 hours per monitor at the rate of $10 per hour
Inspection: 1 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 $350.
Required
(a) Determine the total cost for this job.
(b) Determine the gross margin per monitor.
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