Solution-Compute the cost to produce one helmet

Compute the cost to produce one helmet

Reference no: EM131569900

Problem - 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

a. 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
	Direct Material	Direct Labor	Manufacturing Overhead	Period Cost
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

b. Compute the cost to produce one helmet.

Reference no: EM131569900

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Compute the cost to produce one helmet

Reference no: EM131569900

Reference no: EM131569900

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