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NTER VERS BAQ Question 3 Bell Company, a manufacturer of audio systems, started its production in October 2020. For the preceding 3 years, Bell
NTER VERS BAQ Question 3 Bell Company, a manufacturer of audio systems, started its production in October 2020. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw material costs for an audio system will total $75 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to con In addition, the rent on the equipment used to assemble audio systems amounts to $5,700 per month. Indirect materials cost $6 per system. A supervisor was hired to overse production; her monthly salary is $4,100. Factory janitorial costs are $1,500 monthly. Advertising costs for the audio system will be $9,100 per month. The factory building depreciation expense is $6,000 per year. Pro taxes on the factory building will be $9,600 per year.
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