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Direct department costs (excluding direct materials cost) Square footage occupied Number of final guitars produced Average number of components per guitar Direct labor hours

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Direct department costs (excluding direct materials cost) Square footage occupied Number of final guitars produced Average number of components per guitar Direct labor hours Administration Material $1,500,000 Acoustic Processing Guitar $1,200,000 Electric Guitar $6,800,000 $5,480,000 5,000 50,000 25,000 8,000 10,000 100 160 30,000 8,000 - Direct Materials Cost Number of Components Direct Labor Hours M1 740 110 3.0 M2 860 90 6.0 E1 630 100 1.5 E2 910 200 1.0

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