Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio systemmarkets Spish Brothers decided to turn its retail store into an audio equipment factory Production began October 1.2025.Direct materials costs for an audio system total $75 per unit Workers on the production lines are paid $15 per hour An audio systemtakes 7 labor hours to complets. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per monthIndirect materials cost $7 per system. A supervisor was hired to oversee production her monthly salary is $2.060Factory janitorial costs are $2.310 monthly Advertising costs for the audio system will be $9.330 per month. The factory buildingdepreciation is $7,080 per year. Property taxes on the factory building will be $8.400 per year(a)Assuming that Splish Brothers manufactures, on average 1.500 audio systems per month enter each cost item on your answersheet placing the dollar amount per month under the appropriate headings Total the dollar amounts in each of the columCostermDirect materialsWages for workersRent on equipmentIndirect materialsFactory supervisor's salaryJanitorial costsAdvertisingDepreciation on factory buildingTextbook and Media1DirectMaterialsProduct CostsDirectLaborManufacturingOverhead

Direct Costs are the costs directly associated with producing a product or delivering a service.…

Splish Brothers Company has been a retailer of audio systems for the past 3 years. However, after a thorough survey of audio system markets Spish Brothers decided to turn its retail store into an audio equipment factory Production began October 1.2025 Direct materials costs for an audio system total $75 per unit Workers on the production lines are paid $15 per hour. An audio system takes 7 labor hours to complets. In addition, the rent on the equipment used to assemble audio systems amounts to $5,960 per month Indirect materials cost $7 per system A superviser Nired to oversee production her monthly salary is $3.000 Factory janitorial costs are $2.390 monthly Advertising costs for the audio system will be $9,330 per month The factory building depreciation is $7,080 per year Property taxes on the factory building will be $8.400 per year (a) Assuming that Solish Brothers 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 colum Product Costs Direct Labor Coste Direct materials Wages for workers Rent on equipment Indirect materials Direct Materials 10000 Manufacturing Overhead

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 7P: Self-Construction Olson Machine Company manufactures small and large milling machines. Selling...