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

Production cost per helmet

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ANSWERS TO THE FIRST PART OF QUESTION IS BELOW

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). Ohnos monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment		$11,100
Insurance on factory building		1,800
Raw materials (plastics, polystyrene, etc.)		80,600
Utility costs for factory		900
Supplies for general office		400
Wages for assembly line workers		67,900
Depreciation on office equipment		900
Miscellaneous materials (glue, thread, etc.)		1,500
Factory managers salary		6,600
Property taxes on factory building		500
Advertising for helmets		14,100
Sales commissions		10,400
Depreciation on factory building		1,600

DIRECT MATERIALS $80600

DIRECT LABOR $67900

MANUFACTURING OVERHEAD $24000

PERIOD COST $25800