Question

inment Question 1 NEXT Ohne Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough order to keep the factory products at 10.000 helmets per month (80% of its full capacity). Ono's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11.100 Insurance on factory building 1.900 Raw materials (plastics, polystyrene, etc.) 78,300 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 67,100 Depreciation on office equipment 900 Miscellaneous materials (glue thread, etc.) 1,400 Factory manager's salary 5.300 Property taxes on factory building 100 Advertising for helmets 14.500 Sales commissions 10.800 Depreciation on factory building 1.700 Your answer is correct. Enter each cost item on your wer sheet placing the dollar amount under the appropriate hings Total the door amounts in each of the com Product Costs Direct Direct Manufacturing Period Cost Item Labor Materials Overhead Costs

Answer 1

a
	Product Costs
	Direct Materials	Direct Labor	Manufacturing Overhead	Period Costs
Rent on factory equipment			11100
Insurance on factory building			1900
Raw materials (plastics, polystyrene, etc.)	78300
Utility costs for factory			900
Supplies for general office				300
Wages for assembly line workers		67100
Depreciation on office equipment				900
Miscellaneous materials (glue, thread, etc.)			1400
Factory manager’s salary			5800
Property taxes on factory building			400
Advertising for helmets				14500
Sales commissions				10800
Depreciation on factory building			1700
	78300	67100	23200	26500
b
Direct Materials	78300
Direct Labor	67100
Manufacturing Overhead	23200
Total production costs	168600
Divide by total helmets produced	10000
Cost to produce one helmet	16.86