ACC 560 Week 1-11 All Homework , Quizzes , Assignments
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 . ==============================================
ACC 560 Week 1-11 All Homework , Quizzes , Assignments
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