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Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets,
Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Splish Brothers decided to turn its retail store into an audio equipment factory. Production began October 1, 2022. Direct materials costs for an audio system total $75 per unit. Workers on the production lines are paid $14 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 $5,200 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $4,000. Factory janitorial costs are $1,770 monthly. Advertising costs for the audio system will be $8.970 per month. The factory building depreciation is $7,200 per year. Property taxes on the factory building will be $8,760 per year. (a) Your Answer Correct Answer Your answer is partially correct. Assuming that Splish Brothers 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
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