Direct materials costs for an audio system total $76 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,590 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,600. Factory janitorial costs are $1,600 monthly. Advertising costs for the audio system will be $9,570 per month. The factory building depreciation is $6,720 per year. Property taxes on the factory building will be $8,880 per year. (a) Assuming that Skysong manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. Cost Item Direct materials Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building Direct Materials S Product Costs Direct Labor JIN

Direct materials costs for an audio system total $76 per unit. Workers on the production lines are paid $13 per hour. An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,590 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee production; her monthly salary is $3,600. Factory janitorial costs are $1,600 monthly. Advertising costs for the audio system will be $9,570 per month. The factory building depreciation is $6,720 per year. Property taxes on the factory building will be $8,880 per year. (a) Assuming that Skysong manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. Cost Item Direct materials Wages for workers Rent on equipment Indirect materials Factory supervisor's salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building Direct Materials S Product Costs Direct Labor JIN

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Description: 2022.Direct materials costs for an audio system total $76 per unit. Workers on the production lines are paid $13 per hour.An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audiosystems amounts t

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

2022.
Direct materials costs for an audio system total $76 per unit. Workers on the production lines are paid $13 per hour.
An audio system takes 6 labor hours to complete. In addition, the rent on the equipment used to assemble audio
systems amounts to $5,590 per month. Indirect materials cost $7 per system. A supervisor was hired to oversee
production; her monthly salary is $3,600.
Factory janitorial costs are $1,600 monthly. Advertising costs for the audio system will be $9,570 per month. The
factory building depreciation is $6,720 per year. Property taxes on the factory building will be $8,880 per year.
(a)
Assuming that Skysong manufactures, on average, 1,500 audio systems per month, enter each cost item on your
answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in
each of the columns.
Cost Item
Direct materials
Wages for workers
Rent on equipment
Indirect materials
Factory supervisor's salary
Janitorial costs
Advertising
Depreciation on factory building
Property taxes on factory building
$
ry. Production began October 1,
Direct
Materials
$
$
Product Costs
Direct
Labor
ANTOR
$

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