Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 27,000 units of Clubs, which retails for $190. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $25 per hour, and Five Card Draw estimated 180,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated overhead is $720,000. Five Card Draw uses the traditional allocation method based on direct labor hours. PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). All items will be listed in the same order as shown in the textbook. What is the Predetermined Overhead Rate? ________ What is the gross profit per unit for Diamonds and Clubs? (Hint: This first table is a combination of two forms shown in the textbook.) Term/Accounts Diamonds Clubs Gross Profit per unit 3. What is the total gross profit for the year? Terms/Account Diamonds Clubs Total
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Please use this exact format for all three parts
Using the following accounts and terms, answer the questions below:
| Direct Labor per Unit | Gross Profit | Total Cost per Unit |
| Gross Profit per Unit | Direct Materials per Unit | Sales Total |
| Overhead per Unit | Cost of Goods Sold | Unit Sales Price |
Five Card Draw manufactures and sells 24,000 units of Diamonds, which retails for $180, and 27,000 units of Clubs, which retails for $190. The direct materials cost is $25 per unit of Diamonds and $30 per unit of Clubs. The labor rate is $25 per hour, and Five Card Draw estimated 180,000 direct labor hours. It takes 3 direct labor hours to manufacture Diamonds and 4 hours for Clubs. The total estimated overhead is $720,000. Five Card Draw uses the traditional allocation method based on direct labor hours.
PLEASE NOTE: Predetermined overhead rates will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). The rates will include their proper label according to the textbook examples (no abbreviations).
All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). All items will be listed in the same order as shown in the textbook.
- What is the Predetermined Overhead Rate? ________
- What is the gross profit per unit for Diamonds and Clubs? (Hint: This first table is a combination of two forms shown in the textbook.)
| Term/Accounts | Diamonds | Clubs |
| Gross Profit per unit |
3. What is the total gross profit for the year?
| Terms/Account | Diamonds | Clubs | Total |
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