Royalty Manufacturing has accumulated the following cost information related to the production and sale of...
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Accounting
Royalty Manufacturing has accumulated the following cost information related to the production and sale of 6,000 units of product #35BR:
Direct labor hours 4,500
Average labor rate $9 per hour
Direct materials $25,000
Unit selling price $28.50
Variable manufacturing OH 110% of direct materials
Variable selling and administrative expenses $3 per unit
Fixed selling and administrative expenses $32,000
Fixed manufacturing overhead $27,000
Calculate Royalty's gross profit using variable costing related to product #35BR Options: 1. $78,000 2. $51,000 3. $1,000 4. $60,000 I got 60,000 but this is wrong. Plz help me.
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