If One Unit of Product Z2 Used $2

question 184

Multiple Choice

If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

• A) $0.90.
• B) $5.50.
• C) $2.50.
• D) $1.60.
• E) $8.00.

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