Managerial Accounting case study paper

T&J manufacturing has a factory that produces custom kitchen cabinets. It has multiple product lines.

Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the .

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The materials include $1,000 for the wood and other direct materials of $200. Both items listed are on a per job basis. It requires 20 hours of labor on average for a custom kitchen. The hourly rate is $10.

The sales price will be set at a markup of 65%.

The companyestimatesthat it will have 16,000 direct labor hours in total for all product lines.

It assumes 800 units are sold on average per year. A breakdown of estimated yearly costs related to the :


Salaries- office & administrative

$ 520,000


Salaries for factory personal:



Office Rent

$ 125,000


Factory Rent



Office Utilities and (based on units sold)



Sales Travel(based on units sold)



Insurance – office



Depreciation – office equipment



Depreciation for factory equipment






Sales commissions(based on units sold)



Factory Property taxes:



Maintenance for factory equipment:


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