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Unformatted text preview: $5,000.00 per year Shipping costs $4,000.00 per truckload (240 tables) Cost of the building in which all our business activities takes place (purchased beg. of year) $400,000.00 (Half the building is used for production, the rest for administrative/selling functions) Property tax on building $3,600.00 President's salary $100,000.00 What is the "cost" of one table? One simple solution: Per unit Direct Materials Direct Labor Manufacturing Overhead: Mfg. Labor Indirect materials Bldg. Depreciation (assuming a 10-year life) Property Tax on Bldg. Cost of one table ("product cost") 30 minutes packing time @ $8/hour Per table sold We expect to spend about $11,520 this year, and produce 2,880 tables. We expect the building to last 10 years, and then be worthless. We expect to spend about $11,520 this year, and produce 2,880 tables. D10: We expect the building to last 10 years, and then be worthless. C25:...
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- Summer '09