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Crane Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders
Crane 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). Crane's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,600 Insurance on factory building 1,600 Raw materials (plastics, polystyrene, etc.) 84,000 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 62,900 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,400 Factory manager's salary 6,200 Property taxes on factory building i 500 Advertising for helmets 14,500 Sales commissions 10,700 Depreciation on factory building 1,700 Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per helmet $ 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. Cost Item Direct Materials 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 84000 Product Costs Direct Labor 62900 Manufact Overhe $ 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 84000 i i i i 62900 $ 84000 62900 $ Direct Materials 54000 i $ Direct Labor $ Manufacturing Overhead 11600 $ 1600 Period Costs 900 i 62900 i i 1400 i 6200 500 300 i 900 14500 i 900 i i 62900 i 300 i i i i 1400 i 900 6200 3 i 500 1 i i 14500 1700 10700 84000 62900 $ 23900 $ 26400
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