Author Question: Sierra Ceramics makes custom ceramic tiles. During March, the company started and finished Job #231. ... (Read 67 times)

j.rubin · **on:** Jan 4, 2020

Sierra Ceramics makes custom ceramic tiles. During March, the company started and finished Job #231. Job #231 consists of 2,000 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #231.

Basic terra cotta tiles:

2,000 units at $2.00 per unit

Specialty paint:

5 quarts at $4.00 per quart

High gloss glaze:

3 quarts at $10.00 per quart

Labour time records show the following employees worked on Job #231:

Emily Jergens:

20 hours at $22 per hour

Dan Evrard:

12 hours at $15 per hour

Sierra Ceramics allocates manufacturing overhead at a rate of $25 per direct labour hour.

What is Sierra Ceramics' gross profit per tile on Job #231?
◦ $11.60
◦ $12.00
◦ $9.67
◦ $9.27

raenoj · **Reply #1 on:** Jan 4, 2020

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