Sage Hill Company has been a retailer of audio systems for the past years. However, after a thorough survey of audio system markets, Sage Hill decided to turn its retail store into an audio equipment factory. Production began October
Direct materials costs for an audio system total $ per unit. Workers on the production lines are paid $ per hour. An audio system takes labor hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $ per month. Indirect materials cost $ per system. A supervisor was hired to oversee production; her monthly salary is $
Factory janitorial costs are $ monthly. Advertising costs for the audio system will be $ per month. The factory building depreciation is $ per year. Property taxes on the factory building will be $ per year.
a
Assuming that Sage Hill manufactures, on average, 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.
