Ti Co, a manufacturer of stero started it\'s production asretailer in Oct08 for

Question

Ti Co, a manufacturer of stero started it's production asretailer in Oct08 for 3 years then decided to turn it to steroequipment factory. Raw Material   $74 per unit. Workers average paid$12 an hr. Stero system takes 5 hours to complete. Rent on theequipment used to assemble $4,900 per month. Indirect Materialscost $5 per system. Supervisor monthly salary $3,000. Janitorialcost $1,300 monthly. Advertising $8,500 per month. Factory bldgdepreciation expense $7,200per yr. Property tax $9,000 peryr. Prepare answer sheet assuming Ti Manufactures,on average 1,300stero per month. Compute the cost to produce one stero system.(round answer to2 decimal places) Ti Co, a manufacturer of stero started it's production asretailer in Oct08 for 3 years then decided to turn it to steroequipment factory. Raw Material   $74 per unit. Workers average paid$12 an hr. Stero system takes 5 hours to complete. Rent on theequipment used to assemble $4,900 per month. Indirect Materialscost $5 per system. Supervisor monthly salary $3,000. Janitorialcost $1,300 monthly. Advertising $8,500 per month. Factory bldgdepreciation expense $7,200per yr. Property tax $9,000 peryr. Prepare answer sheet assuming Ti Manufactures,on average 1,300stero per month. Compute the cost to produce one stero system.(round answer to2 decimal places)

Explanation / Answer

Monthly
Rent = $4900 Supervisor = $3000 Janitorial = $1300 Advertising = $8500 Depreciation = $7200 Property Tax = $9000 Total = $33,900/1300 units per month = Above costs per unit = $26.08 Raw Material = $74.00 Workers $12/hr @ 5 hrs per unit = $60.00 Total cost per unit = $160.08 Total cost per unit = $160.08

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