Question
Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders and capacity to produce
Echo Sports Company produces home basketball goal systems consisting of a stand, backboard, rim, and net. The company has sufficient orders and capacity to produce 800 goal systems per month. Manufacturing costs and other costs are shown below:
Administrative salary $2,400
Depreciation on office equipment 400
Depreciation on production equipment 1,800
Electric and other factory utilities 1,400
Factory supervisor salary 2,000
Fiberglass backboards purchased from another manufacturer 30,400
Insurance on factory building and contents 600
Maintenance costs on factory equipment 1,200
Nets and rims purchased from another manufacturer 6,400
Rent on factory building 2,000
Sales commissions 1,600
Steel pipe for stand fabrication 14,920
Supplies for administrative office 600
Wages for production workers 14,720
TOTAL $80,440
Direct Materials Direct Labor Overhead
Administrative salary $ $ $
Depreciation on office equipment
Depreciation on production equipment
Electric and other factory utilities
Factory supervisor salary
Fiberglass backboards purchased from another manufacturer
Insurance on factory building and contents
Maintenance costs on factory equipment
Nets and rims purchased from another manufacturer
Rent on factory building
Sales commissions
Steel pipe for stand fabrication
Supplies for administrative office
Wages for production workers
Totals
Compute the cost to produce 1 basketball goal system (cost per unit):
Direct materials $
Direct labor $
Overhead $
Total manufacturing costs $
Units of production $
Cost per unit $
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