Question

Problem 14-02A Bell Company, a manufacturer of audio systems, started its production in October 2020. 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 material costs for an audio system will total $76 per unit. Workers on the production lines are on average pald $15 per hour. An audio system usually takes 7 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,400 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $4,100. Factory janitorial costs are $1,500 monthly. Advertising costs for the audio system will be s9,500 per month. The factory building depreciation expense is $7,200 per year. Property taxes on the factory building will be $8,400 per year. Assuming that Bell manufactures, on average, 1,000 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. Product Costs Manufacturing Overhead Direct Materials Direct Labor Period Cost Item Costs Raw materials %24 Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building LINK TO VIDEO LINK TO TEXT Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per system Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO M.

Answer 1

				Direct	direct	manufacturing	Period
Cost Item				materials	labor	overhead	costs
Raw materials				76000
Wages for workers					105000
Rent on Equipment						5,400
indirect materials						7000
Factory supervisor's salary						4,100
Janitorial costs						1,500
Advertising							9,500
Depreciaiton on factory building						600
property taxes on factory building						700
total				76000	105000	19300	9500
product cost per system
direct materials				76000
direct labor				105000
manufacturing overhead				19300
total manufacturing cost				200300
untis produced				1,000
cost per unit				200.30