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Sandhill Company, a manufacturer of driver golf clubs, started production in November 2022. For the preceding ve years, Sandhill had been a retailer of sports
Sandhill Company, a manufacturer of driver golf clubs, started production in November 2022. For the preceding ve years, Sandhill had been a retailer of sports equipment. After a thorough survey of driver golf club markets, Sandhill decided to turn its retail store into a driver golf club factory. Raw materials costs will total $24 per driver. Workers on the production lines are paid on average $16 per hour. A driver usually takes 2 hours to complete. In addition, the rent on the equipment used to produce drivers amounts to $1,590 per month. Indirect materials cost $5 per driver. A supervisor was hired to oversee production; her monthly salary is $4,100. Factory janitorial costs are $1,700 monthly. Advertising costs for the drivers will be $6,060 per month. The factory building depreciation expense is $9,600 per year. Property taxes on the factory building will be $7,620 per year. Complete the following answer sheet assuming that Sandhill manufactures, on average, 2,500 drivers per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate heading. Total the dollar amounts in each of the columns. Product Costs Direct Direct Manufacturing Cost Item Materials Labour Overhead Raw materials $ Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Factory janitorial 10 00 0 300 costs Advertising Depreciation- factory building Property taxes-factory building eTextbook and Media ./3.5 Question Part Score Calculate the cost to produce one driver. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per driver $
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