Heritage Company manufactures a beautiful bookcase that enjoys widespread popula

Question

Heritage Company manufactures a beautiful bookcase that enjoys widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 3,900 bookcases per year. Annual cost data at full capacity follow:

Enter the dollar amount of each cost item under the appropriate headings. Note that each cost item is classified in two ways: first, as either variable or fixed with respect to the number of units produced and sold; and second, as either a selling and administrative cost or a product cost. (If the item is a product cost, it should also be classified as either direct or indirect.)

Compute the average product cost per bookcase. (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

     Direct materials used (wood and glass) $ 432,000      Administrative office salaries $ 113,000      Factory supervision $ 66,000      Sales commissions $ 55,000      Depreciation, factory building $ 104,000      Depreciation, administrative office equipment $ 3,000      Indirect materials, factory $ 17,000      Factory labor (cutting and assembly) $ 86,000      Advertising $ 97,000      Insurance, factory $ 5,000      Administrative office supplies (billing) $ 4,000      Property taxes, factory $ 22,000      Utilities, factory $ 46,000   

Explanation / Answer

http://www.chegg.com/homework-help/questions-and-answers/heritage-company-manufactures-beautiful-bookcase-enjoys-widespread-popularity-company-back-q2810398

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