Bart’s woodwork company makes and sells wooden selves. Bart’s carpenter makes the selves in the company’s rented building. Bart has a separate office at another location that also includes a showroom where customers can view shelves and ask questions of sales people. The company sells all the shelves it produces each year. Assume the company keeps no inventories. The following information pertains to Bart’s woodwork company for the past year:
Units produced and sales .................................................................50,000
Sales price per unit .............................................................................. $ 70
Carpenter labor to make shelves .....................................................600,000
Wood to make shelves ....................................................................450,000
Sales staff salaries .............................................................................80,000
Office and showroom rental expenses ............................................150,000
Depreciation on carpentry equipment ...............................................50,000
Advertising ......................................................................................200,000
Sales commission based on number of units sold ...........................180,000
Miscellaneous fixed manufacturing overhead (support) ................150,000
Rent for the building where the shelves are made ..........................300,000
Miscellaneous variable manufacturing overhead (support) ............350,000
Depreciation for office equipment................................................... 10,000