Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Current Attempt in Progress Blue Company, a manufacturer of audio systems, started its production in October 2022. For the preceding 3 years, Blue had been
Current Attempt in Progress Blue Company, a manufacturer of audio systems, started its production in October 2022. For the preceding 3 years, Blue had been a retailer of audio systems. After a thorough survey of audio system markets, Blue decided to turn its retail store into an audio equipment factory. Raw material costs 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 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $3,500 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,780. Factory janitorial costs are $1,560 monthly. Advertising costs for the audio system will be $8,620 per month. The factory building depreciation expense is $6,960 per year. Property taxes on the factory building will be $9,360 per year. (a) Assuming that Blue manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. Cost Item Direct Materials Product Costs Direct Labor Manufacturing Overhead SUP
Step 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