Shamrock Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Shamrock 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.

(a)

Assuming that Shamrock manufactures, on average, 1,600 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.

\begin{tabular}{|c|c|c|c|c|c|c|} \hline & & & & oduct Costs & & \\ \hline Cost Item & & \begin{tabular}{l} Direct \\ Materials \end{tabular} & & \begin{tabular}{l} Direct \\ Labor \end{tabular} & & \begin{tabular}{c} Manufacturing \\ Overhead \end{tabular} \\ \hline Direct materials & $ & = & $ & & $ & \\ \hline & & & & & & \\ \hline Wages for workers & & & & & & \\ \hline Rent on equipment & & & & & & \\ \hline Indirect materials & & & & & & \\ \hline & & - & & & & \\ \hline Factory supervisor's salary & & & & & & \\ \hline Janitorial costs & & & & & & \\ \hline & & & & & & \\ \hline Advertising & & & & & & \\ \hline Depreciation on factory building & & & & & & \\ \hline Property taxes on factory building & & & & & & \\ \hline & $ & & $ & & $ & v \\ \hline \end{tabular}