Business, 02.09.2020 18:01 emmasparkle54
Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $77 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,100 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,540. Factory janitorial costs are $1,420 monthly. Advertising costs for the audio system will be $8,850 per month. The factory building depreciation expense is $6,720 per year. Property taxes on the factory building will be $8,400 per year. Assuming that Bell manufactures, on average, 1,450 audio systems per month, identify and itemize the product costs, direct materials, direct labor, manufacturing overhead, and period costs.
Answers: 2
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Bell Company, a manufacturer of audio systems, started its production in October 2017. For the prece...