Question
Sage Hill Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Sage
Sage Hill Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Sage Hill decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $76 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 5 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,630 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $2,880. Factory janitorial costs are $2,180 monthly. Advertising costs for the audio system will be $8,670 per month. The factory building depreciation is $6,480 per year. Property taxes on the factory building will be $9,240 per year.
Assuming that Sage Hill 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. Direct Materials Product Costs Direct Labor Manufacturing Overhead Cost Item Direct materials $ $ Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs 1dddddddd DOOOO.OOO Advertising Depreciation on factory building Property taxes on factory building Assuming that Sage Hill 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. Product Costs Direct Materials Direct Labor Manufacturing Overhead Period Costs $ $ 10000.00 $ $ $Step by Step Solution
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