Reference no: EM132707758

The Charles Company specializes in manufacturing bird houses. The company has a large number of orders to keep the factory production at 10,000 per month. Charles's ' monthly manufacturing costs and other expense data are as follows:

Rent on factory equipment.........................................................$6,000
Advertising for the bird houses ......................................................8,000
Insurance on factory building.......................................................2,000
Raw materials........................................................................24,000
Supplies for the general office.........................................................500
Wages for assembly line workers..................................................39,700
Depreciation on office equipment......................................................800
Miscellaneous factory materials.......................................................400
Company's president's salary........................................................2,700
Utility costs for the factory............................................................900
Maintenance costs for the factory.....................................................400
Factory supervisor's salary..........................................................1,500
Sales commissions....................................................................3,700
Depreciation on factory building......................................................900

Instructions:

Problem 1: Using the above data, if the company manufactured 10,000 bird houses during the month, what was the unit cost to manufacture a single bird house?