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Ti Co, a manufacturer of stero started it's production as retailer in Oct 08 for 3 years then decided to turn it to stero equipment factory. Raw Material $74 per unit. Workers average paid $12 an hr. Stero system takes 5 hours to complete. Rent on the equipment used to assemble $4,900 per month. Indirect Materials cost $5 per system. Supervisor monthly salary $3,000. Jan it orial cost $1,300 monthly. Advertising $8,500 per month. Factory bldg depreciation expense $7,200per yr. Property tax $9,000 peryr.
Prepare answer sheet assuming Ti Manufactures,on average 1,300 stero per month.
Compute the cost to produce one stero system.(round answer to2 decimal places)
The standard costs and actual costs for direct labor for the manufacture of 2,500 actual units of product are as follows:
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