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 $77 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 $5,857 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,264. Factory janitorial costs are $1,776 monthly. Advertising costs for the audio system will be $8,919 per month. The factory building depreciation expense is $6,660 per year. Property taxes on the factory building will be $9,312 per year.
Assuming that Bell manufactures, on average, 1,550 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate head
Direct Materials Direct Labor Manufacturing Overhead Period Costs
Raw Materials (1) _________ ___________ _____________________ ____________
Wages for workers (2) ___________ ___________ _____________________ ____________
Rent on Equipment _______________ ___________ _____________________ ____________
Indirect Materials (3) _____________ ____________ _____________________ _____________
Factory supervisors salary _________ _____________ _____________________ _____________
Janitorial Costs _____________ ______________ _____________________ _____________
Advertising _______________ ______________ _______________________ _____________
Depreciation on factory building _______ ______________ ________________________ ______________
Property taxes on factory building ______ ______________ _____________________ _______________
Total _________________ _______________ _______________________ ______________