Reference no: EM133235009
Accounting Assignment - Adventure Manufacturing has a factory that produces cabinetry for the RV and marine market. The company has other product lines.
Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs
The following information highlights Adventure Manufacturing's cost structure for 2022.
The materials include $2,200 for the wood and other materials on a per job basis.
It requires 25 hours of labor on average for the cabinetry. The hourly rate is $14.
The sales price will be set at a markup of 95% on manufacturing costs.
The company estimates that it will have 30,000 direct labor hours in total for the cabinets.
It assumes 1200 units are sold on average per year.
A breakdown of estimated yearly costs related to the cabinetry follows:
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Salaries- office & administrative
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$500,000
|
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Salaries for factory supervisors, janitor and security
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$320,000
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Office Rent
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$160,000
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Factory Rent
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$30,000
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Office utilities and Misc office expenses(based on units sold)
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$20,000
|
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Sales travel(based on units sold)
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$24,000
|
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Insurance - office
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$12,000
|
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Depreciation - office equipment
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$40,000
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Depreciation for factory equipment
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$50,000
|
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Advertising
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$20,000
|
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Sales commissions(based on units sold)
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$45,000
|
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Factory Property taxes
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$16,000
|
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Maintenance for factory equipment
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$70,000
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Hint - you will need to distinguish between product vs. period costs and variable vs fixed costs. Please do not forget all costs for this company (not just the ones listed above in the table).
Attachment:- Cost Accounting Assignment File.rar