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AGV Sdn. Bhd. (ACV) produces many different models of motorcycle helmets. Assume that the market has responded enthusiastically to a new model, the Stealth As
AGV Sdn. Bhd. (ACV) produces many different models of motorcycle helmets. Assume that the market has responded enthusiastically to a new model, the Stealth As a result, AGV has established a separate manufacturing facility to focus on production of Stealth. The company produces 3,000 helmets per month. AGV's monthly manufacturing costs and other data are as follows: Rental of manufacturing equipment RM2,500/month 2. Insurance on manufacturing building RM,000/month 3. Upkeep of building facilities RM500/month 4. Raw materials (shell, liner, plastic.etc) RM 100/helmet 5. Utility costs for manufacturing facility RM600/month 6. Wages for assembly line workers in manufacturing facility RM40/helmet 7. Depreciation on office fixtures and fittings RM350/month 8. Administrative office expenses RM650/month 9. Quit rent on office building RM2,400/year 10. Manufacturing manager's salary RM6,000/month 1. Advertising & marketing expenses RM20,000/year 12. Sales commissions to agents RM50/helmet 13. Depreciation on manufacturing building RM2,000/month Required: a) Prepare an answer sheet with the following column headings: Product Cost Period Cost Cost Item Direct Materials Direct Labour Manufacturing Overhead Enter each cost item on your answer sheet, placing an "X" mark under the appropriate headings. (13 marks) b) Compute total manufacturing costs for the month. (7 marks)
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