Bell Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $74 per unit. Workers on the production lines are paid $12 per hour. An audio system takes 5 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation is $7,800 per year. Property taxes on the factory building will be $9,000 per year.

Instructions

a. Prepare an answer sheet with the following column headings for October 2022.

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Product Costs Cost Direct Direct Manufacturing Period Item Materials Labor Overhead Costs