Reference no: EM131250985
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 $ 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 amounts 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 costs are $ 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.
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.
Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.)
|
Prepare classified balance sheet
: The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $23,000; accounts receivable, $18,000; inventories, $32,000; equipment (net), $87,000; accounts payable, $21,00..
|
|
What will be impact on the operating leverage of a firm
: What will be impact on the operating leverage of a firm, if it proceeds for additional borrowings - Incremental cash flows in relation to capital budgeting decisions
|
|
Calculate total current assets and total current liabilities
: The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2016, the end of its fiscal year: cash, $27,000; accounts receivable, $22,000; inventories, $36,000; Calculate total current assets and total current ..
|
|
Write a paragraph in which analyze the extended metaphor
: Write a paragraph in which analyze the extended metaphor
|
|
After thorough survey of audio system markets
: 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. Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost i..
|
|
What is special about the game of chicken
: What is the difference between a dominant strategy and a dominated strategy? Why would a player in a game be unlikely to choose a dominated strategy?
|
|
What are advantages of storing data in a dbms like access
: Some people like to store their information in Excel files. What are the advantages of storing data in a database management system like Access over Excel? Name 3.
|
|
Write memo in which you communicate a negative message
: Write a 1- to 2-page formal letter or memo in which you communicate a negative message. You may select from one of the following scenarios: Tell your investors or employees about a recent decrease in your company's stock value
|
|
Required reserve-deposit ratio for demand deposit
: Suppose the required reserve-deposit ratio for demand deposit (rd) is greater than that of saving and time deposits (rt). Let k be the cash to total deposits ratio; t be ratio of saving and time deposits to total deposits; and e be the excess rese..
|