arin Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Marin decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $15 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 $5,000 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,870. Factory janitorial costs are $1,460 monthly. Advertising costs for the audio system will be $9,230 per month. The factory building depreciation is $6,840 per year. Property taxes on the factory building will be $8,400 per year.

cost item	direct materials	direct labor	manufacturing overhead	period cost
direct materials	$	$	$	$
wages for workers
rent on equipment
indirect materials
factory supervisors salary
janitorial costs
advertising
depreciation on factory building
property taxes on factory building
	$	$	$	$

2. compute the cost to produce one audio system

production cost per system $