Direct materials cost


Serber, Inc., which uses a volume-based cost system, produces cat condos that sell for $200 each. Direct materials cost $19 per unit, and direct labor costs $14 per unit. Manufacturing overhead is applied at a rate of 240% of direct labor cost. Nonmanufacturing costs are $37 per unit. What is the gross profit margin for the cat condos?


66.5%

48.0%

34.5%

52.0%

 

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Accounting Basics: Direct materials cost
Reference No:- TGS0556211

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