lilcat
May 27, 2013, 03:13 PM
Bell Company, a manufacturer of audio systems, started its production in October 2014. 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 $75 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,352 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,452.
Factory janitorial costs are $1,427 monthly. Advertising costs for the audio system will be $8,784 per month. The factory building depreciation expense is $6,468 per year. Property taxes on the factory building will be $8,940 per year.
Assuming that Bell manufactures, on average, 1,527 audio systems per month,
Raw materials cost for an audio system will total $75 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,352 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,452.
Factory janitorial costs are $1,427 monthly. Advertising costs for the audio system will be $8,784 per month. The factory building depreciation expense is $6,468 per year. Property taxes on the factory building will be $8,940 per year.
Assuming that Bell manufactures, on average, 1,527 audio systems per month,