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Wildhorse Company, a manufacturer of driver golf clubs, started production in November 2022 . For the preceding five years, Wildhorse had been a retailer of
Wildhorse Company, a manufacturer of driver golf clubs, started production in November 2022 . For the preceding five years, Wildhorse had been a retailer of sports equipment. After a thorough survey of driver golf club markets, Wildhorse 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 $17 per hour. A driver usually takes 2 hours to complete. In addition, the rent on the equipment used to produce drivers amounts to $1,830 per month. Indirect materials cost $3 per driver. A supervisor was hired to oversee production; her monthly salary is $4,500. Factory janitorial costs are $1,910 monthly. Advertising costs for the drivers will be $6,210 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 Wildhorse 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. Period Costs $ Calculate the cost to produce one driver. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per driver $ eTextbook and Media
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