Question

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted...

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $11,900
Insurance on factory building 2,330
Raw materials (plastics, polystyrene, etc.) 80,500
Utility costs for factory 990
Supplies for general office 330
Wages for assembly line workers 67,000
Depreciation on office equipment 840
Miscellaneous materials (glue, thread, etc.) 1,240
Factory manager’s salary 6,600
Property taxes on factory building 490
Advertising for helmets 14,500
Sales commissions 10,540
Depreciation on factory building 1,650
Prepare an answer sheet with the following column headings.

Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.

Product Costs


Cost Item

Direct
Materials

Direct
Labor

Manufacturing
Overhead

Period
Costs

Rent on factory equipment $

$

$

$

Insurance on factory building

Raw materials

Utility costs for factory

Supplies for general office

Wages for assembly line workers

Depreciation on office equipment

Miscellaneous materials

Factory manager’s salary

Property taxes on factory building

Advertising for helmets

Sales commissions

Depreciation on factory building

$

$

$

$

LINK TO TEXT

Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
Production cost per helmet $

0 0
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Answer #1

Product Costs Direct Materials Direct labor Manufacturing Overhead Period Cosst 11,900 2,330 80,500 990 S 330 $ 67,000 Cost iProduction cost per helmet S 17.27 Production Cost Particulars Direct Materials Direct Labor Manufacturing Overhead Total Pro

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