Compute the cost to produce one helmet

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Reference no: EM131812780

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

$11,600
Insurance on factory building 2,590
Raw materials (plastics, polystyrene, etc.) 83,900
Utility costs for factory 960
Supplies for general office 310
Wages for assembly line workers 58,200
Depreciation on office equipment 910
Miscellaneous materials (glue, thread, etc.) 1,250
Factory manager's salary 5,900
Property taxes on factory building 510
Advertising for helmets 14,700
Sales commissions 10,190
Depreciation on factory building 1,620

~ 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.

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

Reference no: EM131812780

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