A snapper 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). Snapper's monthly manufacturing cost and other expense data are as follows.

Instructions

(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,

(b) Compute the cost to produce one helmet

Transcribed Image Text:

Rent on factory equipment Insurance on factory building $ 6.000 1,500 Raw materials (plastics, polystyrene, etc.) 70.000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 46,000 Depreciation on office equipment 800 Miscellaneous materials (lubricants, solders, etc.) 1,100 Factory manager's salary 5.700 Property taxes on factory building 400 Advertising for helmets 11,000 Sales commissions 7,000 Depreciation on factory building 1,500