Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

image text in transcribed

Teal Mountain Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Teal Mountain decided to turn its retail store into an audio equipment factory Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to 55,070 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is 53,700. Factory janitorial costs are $2,030 monthly. Advertising costs for the audio system will be $9,030 per month. The factory building depreciation is $6.360 per year. Property taxlis on the factory building will be $8,520 per year. (a) * Your answer is incorrect. Compute the cost to produce one audio system. (Round answer to 2 decimal places, eg, 15.25.) Production cost per system $ 172.04 e Textbook and Media Save for Later Attempts: 1 of 5 used Submit Answer Teal Mountain Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets, Teal Mountain decided to turn its retail store into an audio equipment factory Production began October 1, 2022. Direct materials costs for an audio system total $77 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to 55,070 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is 53,700. Factory janitorial costs are $2,030 monthly. Advertising costs for the audio system will be $9,030 per month. The factory building depreciation is $6.360 per year. Property taxlis on the factory building will be $8,520 per year. (a) * Your answer is incorrect. Compute the cost to produce one audio system. (Round answer to 2 decimal places, eg, 15.25.) Production cost per system $ 172.04 e Textbook and Media Save for Later Attempts: 1 of 5 used Submit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting A Smart Approach

Authors: Mary Carey, Cathy Knowles, Jane Towers-Clark

3rd Edition

0198745133, 978-0198745136

More Books

Students also viewed these Accounting questions

Question

Do you strive to create a diverse workforce?

Answered: 1 week ago