ACC 560 help A Guide to career/uophelp.com ACC 560 help A Guide to career/uophelp.com | Page 3

Instructions
Indicate the missing amount for each letter (a) through (i).
E1-2A
E1, 2A 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 cast for an audio system will total $74 per unit. Workers
on the production lines are on average paid $12 per hour. An audio
system usually takes 5 hours to complete. In addition, the rent on the
equipment used to assemble audio systems amount to $4,900 per month.
Indirect materials cost $5 per system. A supervisor was hired to oversee
production; her monthly salary is $3,000.
Factory janitorial casts arc $1,300 monthly. Advertising costs for the
audio system will be $9,500 per month. The factory building
depreciation expense is $7,800 per year. Property taxes on the factory
building will be $9,000 per year.
Instructions
(a) Prepare an answer sheet with the following column headings.
Assuming that Bell 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.
(b) Compute the cost to produce one audio system.
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