Click here if you would like to Show Work for this question Problem 14-2A Bell C

Question

Click here if you would like to Show Work for this question

Problem 14-2A Bell Company, a manufacturer of audio systems, started its production in October 2012. 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 $76 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 $5,823 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,189.

Factory janitorial costs are $1,498 monthly. Advertising costs for the audio system will be $9,231 per month. The factory building depreciation expense is $6,732 per year. Property taxes on the factory building will be $9,480 per year. (a) Assuming that Bell manufactures, on average, 1,476 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
Cost Item Direct
Materials Direct
Labor Manufacturing
Overhead Period
Costs Raw materials (1) $ $ $ $ Wages for workers (2) Rent on equipment Indirect materials (3) Factory supervisor%u2019s salary Janitorial costs Advertising Depreciation on factory building (4) Property taxes on factory building (5) $ $ $ $

Click here if you would like to Show Work for this question

Explanation / Answer

Hi,

Please find the answer as follows:

Thanks.

Product Costs Period Cost Cost Item Direct Materials Direct Labor Manufacturing Overhead
Raw materials 112176


Wages for workers
103320

Rent on equipment

5823
Indirect materials

8856
Factory supervisor's salary

3189
Janitorial costs


1498 Advertising

9231
Depreciation on factory building


561 Property taxes on factory building


790
112176 103320 27099 2849

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.