Advertising costs for the audio system

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Reference no: EM1348238

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 full survey of audio system markets Bell decided to turn its retail store into an audio equipment factory.

The Raw materials cost for an audio system will total $76 per unit. The workers on the production lines are on average paid $15 per hour.

An audio system typically takes 7 hours to complete. Furthermore the rent on the equipment used to collect audio systems amounts to $5,894 per month. Indirect materials cost $6 per system. A supervisor was borrowed to oversee production; her monthly salary is $3,287.
Factory janitorial costs are $2,331 monthly. Advertising costs for the audio system will be $9,502 per month. The factory building depreciation expense is $6,396 per year. Property duties on the factory building will be $8,784 per year.

Presumptuous that Bell manufactures, on average, 1,529 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.

Reference no: EM1348238

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