Larkspur 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). Larkspurs monthly manufacturing costs and other expense data are as follows.

Rent on factory equipment		$12,000
Insurance on factory building		1,650
Raw materials used (plastics, polystyrene, etc.)		84,900
Utility costs for factory		930
Supplies used for general office		350
Wages for assembly-line workers		58,300
Depreciation on office equipment		840
Miscellaneous materials used (glue, thread, etc.)		1,230
Factory managers salary		5,800
Property taxes on factory building		430
Advertising for helmets		14,400
Sales commissions		10,120
Depreciation on factory building		1,660

(a)

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Your answer is correct.

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.

		Product Costs
Cost Item		Direct Materials		Direct Labor		Manufacturing Overhead		Period Costs
Rent on factory equipment		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Insurance on factory building		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Raw materials used (plastics, polystyrene, etc.)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Utility costs for factory		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Supplies for general office		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Wages for assembly-line workers		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Depreciation on office equipment		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Miscellaneous materials used (glue, thread, etc.)		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Factory managers salary		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Property taxes on factory building		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Advertising for helmets		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Sales commissions		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
Depreciation on factory building		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount
		$enter a total amount		$enter a total amount		$enter a total amount		$enter a total amount

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(b)

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Your answer is incorrect.

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

Production cost per helmet

$enter the production cost per helmet in dollars rounded to 2 decimal places