Question
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,310 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,800. Factory janitorial costs are $1,640 monthly. Advertising costs for the audio system will be $9,230 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $8,640 per year.
dollar amounts in each of the colume age, 1,440 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the Product Costs Direct Materials Direct Labor Manufacturing Overhead Period Costs Cost Item Raw materials Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building LINK TO TEXT Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per system Click if you would like to Show Work for this question: Open Show Work LINK TO TEXTStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started